Whether you’re looking to maximise your super for retirement or looking for ways to save on tax - this end of financial year is a great time to make your super work harder for you.
Adding more to your super1, even small contributions, could help grow your super over time. Plus you could save on tax for this financial year if you contribute before 23 June2.
There’s more than one way to help maximise your super and tax savings at tax time. Salary sacrificing3 not only adds more to your super, but it could reduce your taxable income and therefore the total taxes you pay. Plus you could boost your super even further by making catch-up contributions from previous years – a smart way to grow your balance faster if you're able and eligible. And if your spouse or de facto partner has taken time out of the workforce or is earning less, you may be eligible to make super contributions for them.
As the financial year draws to a close, now’s your chance to make smart super moves that could have benefits for years to come.
- Before-tax contributions
- After-tax contributions
- Spouse contributions
How can before-tax contributions save on tax?
When you contribute through salary sacrifice, you’re adding to your super before income tax is deducted from your pay. So there are two potential tax benefits
- You can reduce your taxable income, by reducing the amount of income you have to pay tax on.
- Super is generally taxed at 15%, so if you pay a higher rate of tax on your income, this could help you save at tax time.
Simon saved on tax and saved more for his future
Simon is a graphic designer aged 30 who earns $70,000 a year. He has a super balance of $50,000. His employer makes a Super Guarantee contribution of 11.5%. Making additional before-tax contributions could have a big impact on his retirement balance at 65.
Is there a limit to the contributions I can make?
The cap on before-tax contributions is currently $30,000 a year. This cap includes:
- salary sacrifice contributions you may make
- super contributions your employer makes and
- after-tax contributions you claim a tax deduction on
You can also use the carry forward rule to take advantage of any unused portion of the cap for up to five previous financial years if your total super balance was less than $500,000 on 30 June of the previous financial year.
For example, if the before-tax contributions made by you and your employer were $2,000 under the cap this year, you may be able to go over the cap by $2,000 during any one of the next five financial years.
How to start salary sacrificing to your super
Check with your employer
Check with your employer
The first step is to check with your employer if they offer salary sacrifice. If they do, it can pay to see how much salary sacrificing could impact your take-home pay before choosing to do so.
Provide your contribution details
Provide your contribution details
Download and complete the ‘Add to your super through your employer’ form, and return to your employer or payroll department.
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Important information
- Before adding to your super, consider your financial circumstances, eligibility, contribution caps that may apply, tax issues and when your super can be accessed. We recommend you consider seeking financial advice.
- If you want to make a personal contribution to your super account before the end of the 2024/2025 financial year, you’ll need to submit it by 23 June 2025 to ensure it is received and allocated to your account by 30 June 2025. Contributions made after 23 June 2025 may not be allocated to your account prior to the end of the financial year. For more information on cut off dates, please see australiansuper.com/campaigns/eofy-cut-off.
- Salary sacrifice may affect some Government benefits and employee benefits. We recommend you consider seeking financial advice before deciding if a salary sacrifice arrangement is right for you.
