Save more for retirement this EOFY

As you approach retirement there are simple ways you can add more to your super. It’s a good idea to work out the best way to save for your future while you’re still earning. Many of the ways to contribute extra could help you save on tax too.

Learn how maximising your super can help, and which ways of adding more to super could be right for you. Select from the tabs below to learn more about before-tax, after-tax and spouse contributions.


Before-tax contributions

Put simply, before-tax contributions to your super come out of your pre-tax income. They include the 10% Superannuation Guarantee your employer pays into your super account. Plus, they also include any personal contributions you decide to make via salary sacrifice. Before-tax contributions are also known as ‘concessional contributions’.

How can before-tax contributions help?

When you contribute through salary sacrifice, you’re adding to your super before income tax is deducted from your pay1. Firstly, this reduces your taxable income, reducing the amount you have to pay income tax on. Plus, super is generally taxed at 15%. So if you pay a higher rate of tax on your income, this is another way making before-tax contributions could help you save at tax time.

Is there a limit to the contributions I can make?

The cap on before-tax contributions is currently $27,500 a year. This cap includes things like:

  • salary sacrifice contributions you may make
  • amounts contributed to super by your employer
  • 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 contributions made by you and your employer were $2,000 under the cap this year, you’d be able to go over the cap by $2,000 during any of the next five financial years provided you continue to meet the eligibility criteria.

Cathy saved on tax and saved more for her retirement2

Cathy is a counsellor aged 55 who earns $80,000 a year. She has a super balance of $280,000. Her employer makes a Super Guarantee contribution of 10%. Making additional before-tax contributions could have a big impact on her retirement balance at 67.

Cathy salary sacrifices $60 per fortnight. She saves $304 on tax. At retirement, the difference to her super balance would be $18,000 compared to if she didn’t make any additional contributions to her account. If Cathy decides to salary sacrifice $120 per fortnight, she would save $608 on tax and the difference to her super balance at retirement would be $37,000 compared to if she didn’t make any additional contributions to her account.

To see the difference regular before-tax contributions could make to your balance, use our Super projection calculator. It also shows how much you could save for retirement and estimates how long your super could last.


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 if salary sacrificing could have any impact on your salary and benefits.

Provide your contribution details

Provide your contribution details

Use the link below to download a form which you’ll need to complete and return to your employer or payroll department.


Make a contribution today

The easiest way is through direct debit or BPAY. Log into your AustralianSuper account to get started.

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