Grow your super
How to maximise your superannuation
There are a few ways you can make extra super contributions. Understanding your contribution options and limits will help you make informed decisions about the best way for you to grow your super.
Salary sacrifice
You can choose to ‘sacrifice’ part of your salary and direct it to your super savings instead (sometimes referred to as before-tax contributions). For most people, salary sacrificing is an easy, automatic set-up that could result in a tax deduction too.
On top of boosting your superannuation, your salary sacrificed amount will only be taxed at 15% (often less than your income tax rate). You’ll also reduce your taxable income and potentially your tax payable, making tax return time a little more rewarding each financial year. It’s important to know what restrictions apply before you start.
After-tax contributions
Making voluntary after-tax super contributions (or non-concessional contributions) is a great way to boost your superannuation balance. Depending on your eligibility, the government could reward your savings efforts with a co-contribution of up to $500.
Limits apply to how much you can contribute to superannuation so make sure you're informed before starting.
Boost your partner's super
Partnerships are about supporting each other. There may come a time when your partner’s superannuation growth will need a boost from you. There are two ways you can help your partner grow their super:
- Spouse contributions (after-tax)
- Contribution splitting (before-tax)
Making a spouse contribution may also make you eligible for a tax offset.
Claim a tax deduction
If you make a personal after-tax contribution to your super, you can claim a tax deduction on all or part of it, meaning you may get a little extra back at tax time.
The tax deduction will effectively change your after-tax or ‘non-concessional’ contributions to a ‘concessional’ contribution. That means the amount will be taxed within the super fund at 15%* rather than at your marginal tax rate.
There are rules around limits and timing that you need to consider before claiming a tax deduction on personal contributions.
* 30% for those who earn over $250,000 p.a.