How to Maximise Your Superannuation Contributions

Maximising your superannuation contributions during your career could help you to grow your retirement savings. There are several different strategies you can implement to boost your super, from salary sacrifice contributions and after-tax contributions to spouse contributions and more.

So, if you’re wondering how you could increase your superannuation balance, you’ve come to the right place. 

Read on to learn more about maximising your super contributions.

Strategies to Boost Contributions

There are several strategies individuals can use to enhance their super balance. Do note that the most effective strategy still depends on your individual circumstances, so it may be best to seek financial advice before taking action. However, here’s a quick rundown of how each of these strategies works.

Salary Sacrifice

Depending on your employer, you might have the option to salary sacrifice super contributions. Under a salary sacrifice arrangement, a portion of your before-tax income – an amount you usually agree on with your employer beforehand – is paid into your super fund. These contributions are paid on top of the mandated super guarantee.

While this can reduce the amount you receive into your bank account each time you get paid, salary sacrificing can potentially become beneficial in the long run. For one, salary sacrifice arrangements can help reduce taxable income. 

Not to mention, salary sacrifice contributions up to a certain cap are generally considered concessional contributions, which are taxed at 15% if your salary package is less than $250,000. For most people, this rate is lower than their marginal tax rate, which can translate to a lower tax bill at the end of the financial year. However, keep in mind that any money contributed to your super must remain there until you meet a condition of release.¹

Learn more by visiting the ATO website or with a registered accountant or financial adviser.

After-Tax Contributions

As the name suggests, after-tax personal contributions come from your after-tax income. These after-tax contributions may help to boost your retirement savings.

As these personal contributions have already been taxed, generally at your marginal tax rate, you may be allowed to claim these contributions as a tax deduction on your next tax return.¹

Government Co-Contribution

If you’re a low to middle-income earner earning less than the higher income threshold for the relevant financial year and make personal non-concessional contributions, the government may also make a contribution up to a maximum of $500.¹

The government co-contribution you receive depends on your income and how much you contribute. This isn’t something you need to apply for, the ATO will assess your eligibility when you lodge your tax return.

Low Income Super Tax Offset

The government also offers a low income super tax offset (LISTO) payment to help low-income earners boost their retirement savings. If you earn up to $37,000 a year, you may be eligible to receive a LISTO payment of up to $500.¹

You don’t need to do anything to receive these government co-contributions. You just need to make sure your super fund has your tax file number (TFN). Once you lodge your tax return, they’ll work out whether you’re eligible for these co-contributions.

Downsizer Contribution

If you are 55 or older, you may be able to contribute up to $300,000 from the proceeds of the sale (or part sale) of your home into your superannuation fund.¹

This is a non-concessional contribution but it doesn’t count toward the contribution cap and it won’t affect your total superannuation balance until it is re-calculated at the end of the financial year. 

However they do apply to your transfer balance cap. This cap applies when you move your super savings into retirement phase and is taken into account in determining eligibility for the age pension.

You can make the contribution as long as you meet the eligibility criteria and you can contact your fund to see whether they accept these contributions.

Re-contributing Covid-19 Early Release Withdrawals

If you withdrew money from your super under the Covid-19 Early Release of Super program, you can rebuild your super by making personal contributions subject to eligibility requirements.¹

These re-contributions are excluded from the non-concessional contributions cap. You won’t be able to claim a personal super deduction for any amounts you choose to have treated as a Covid-19 re-contribution. Please note that these will count towards your transfer balance cap and total super balance. The ATO has further information on how to make your re-contribution.

Spouse Contributions

You might also be able to take advantage of spouse contributions. This can be a great option if you or your spouse have taken time out of the workforce.

There are two ways of contributing to your spouse’s super: contributing directly to their super fund or by splitting your contributions with your spouse.

Spouse Contributions

Spouse contributions are contributions you make on behalf of your partner. This can help boost your spouse’s super fund.¹

Additionally you may be able to claim a tax offset for your contributions to your spouse’s super fund, provided you meet some conditions, such as your partner earning less than $40,000 or not working. Additionally, you’ll need to make sure you contribute to your spouse’s complying super fund or retirement savings account (RSA).

If you are eligible, you may be able to claim a tax offset of up to $540 per year.

Super Splitting

Some super funds allow you to split a portion of your eligible contributions with your spouse. This is generally done after the end of the financial year in which the contributions were made. Do note there are restrictions on the type and amount of contributions you can split.¹

To split your super with your spouse, some eligibility criteria apply, such as how they must be under preservation age or between preservation age and 65 and not retired.

By splitting your super with your spouse, you can help to even out your super balances between you, which can be beneficial for estate planning purposes.

Investment Optimisation

Besides making additional personal super contributions to boost your super savings, it can also be worth considering how your super is invested.

Reviewing Investment Options

Most funds allow you the option to choose from a range of investment options, from conservative strategies through to high growth investments. For example, Superhero Super offers access to a variety of diversified, single sector and thematic investment options, alongside a direct investment options that provides access to certain shares and ETFs listed on the ASX. 

These options typically cater to different risk tolerances and investment goals. The investment strategy you choose has the potential to make a significant impact on your super savings, so it’s worth understanding how these investments work and the level of risk that comes with them.

The below will outline some of the most common diversified/pre-mixed investment options in Australian super funds.

Growth 

Growth options tend to invest predominantly in growth assets, like shares and property, with a smaller portion in defensive assets like cash and fixed interest. Although growth and high growth investments have the potential to offer higher returns over the long term, they often come with more short-term fluctuations than one would experience in lower-risk options.

Balanced 

Balanced investments offer a mix of growth and defensive assets to balance risk and return. These tend to aim for reasonable returns, usually less than growth funds, to reduce the risk of losses in bad years.

Conservative 

A conservative investment mix focuses more on defensive assets like cash and fixed interest, with a smaller allocation to growth assets. Conservative strategies generally provide lower returns with less volatility, potentially making them a more suitable choice for those closer to retirement or with a lower risk tolerance.

Cash 

A cash investment mix invests in cash or term deposits, with a focus on capital preservation. This type of strategy aims to guarantee your investment, so it tends to provide the lowest returns.

Consolidating Super Accounts

If you’re looking to streamline your super to maximise your super contributions, it can be worth checking to see if you have more than one super account. Having multiple super accounts often comes with multiple sets of fees. So by consolidating everything into one super account, you may be able to reduce the total fees paid, which may help to boost your super over time.

You can use the Australian Taxation Office’s (ATO) MyGov portal to find and manage all your super accounts. Alternatively, some super funds such as Superhero Super allow you to search for your super funds upon registration using your tax file number (TFN). 

Before you consolidate your super funds, it’s important to choose the super fund that best meets your needs in terms of fees, investment options, performance and services. Similarly, consider the effect that switching superannuation funds may have on your insurance and other related benefits.² From here, you can either use the MyGov portal or your chosen super fund’s consolidation service to transfer balances from other accounts into your preferred account.

Monitoring and Adjusting Contributions

Over the course of your career, your life is likely to experience a few twists and turns that could potentially impact your super contributions. With this in mind, it’s important to monitor your super and adjust any voluntary contributions you might have along the way.

Regular Review

By regularly reviewing your superannuation, you’ll be better positioned to ensure your super balance is on track to meet your future financial goals. 

Your risk tolerance may change over time, especially as you approach retirement. Regular reviews also ensure your investments align with your current risk appetite.

Not to mention, the performance of super funds can change over time, so it’s worth checking in from time to time to see how your fund compares to others. By comparing fees with other super funds, you can make sure you’re getting the best value for your money. Additionally, you might find that changes in your personal circumstances may necessitate adjustments in your insurance coverage.

You can use the YourSuper comparison tool to compare super fund products and their performance.

Aside from reviewing how your super is invested, it’s also prudent to look into the nitty-gritty details such as your personal information to make sure things are updated as you go through life. It is important to ensure that your super fund holds correct personal information for you as this can impact the contributions being received into your account to be invested.

Adapting to Life Changes

Adjusting your superannuation contributions based on changes in your income and career can help you maintain a healthy retirement fund.

Even small voluntary contributions can make a big difference to your super balance over time due to the effect of compound growth. Many individuals consider increasing their contributions alongside increases to their income.¹

Seeking Professional Advice

Navigating the world of tax and super contributions can be tricky, which is why it can help to speak with a professional.

Financial Advisers

Consulting with a financial adviser can provide a range of benefits when it comes to managing your super and your finances in general. With extensive knowledge of superannuation, tax laws and investment strategies, a financial adviser is able to provide customised super and financial advice based on your specific financial situation, goals, risk tolerance and time horizon.

Moneysmart.gov.au provides advice on how to choose an adviser. You can also refer to their financial advisers register to find an adviser who offers personal advice on superannuation as well as investments and life insurance.

Resources and Tools

At Superhero, we’re constantly creating blogs and resources to help people make the right decision when it comes to their super. Alternatively, the government’s MoneySmart website provides a range of educational resources to help you understand how your super works and how to grow your super.

Conclusion

By understanding how your super contributions work, you may be better positioned to make informed decisions on how you manage your super balance. 

 

¹Eligibility Criteria or rules apply. Learn more on the ATO’s website or with a registered accountant or financial adviser.

² Consider the effect that switching superannuation funds may have on your insurance and other related benefits. It is important to thoroughly review and understand the potential impact on your insurance coverage, fees, investment options, and other benefits before making any changes. Transferring the entire balance of your super account to Superhero Super will mean that your old account will be automatically closed.

 

This article reflects information accurate as of 18 February 2025. For latest information or calculations, including eligibility criteria, refer to the ATO website or consult with a registered accountant. 

This information has been prepared by Superhero Super Pty Ltd (ABN 40 667 649 854), a Corporate Authorised Representative (CAR 1306018) of Superhero Securities Limited (ABN 96 160 456 315) (AFSL 430150), and the Promoter of Superhero Super, a sub-plan of OneSuper (ABN 43 905 581 638), issued by Diversa Trustees Limited (ABN 49 006 421 638, AFSL 235153) as Trustee of OneSuper. 

Before making a decision on Superhero Super, please read the relevant Product Disclosure Statements (PDS) and Target Market Determinations, found at superhero.com.au/support/documents. 

Superhero does not provide financial advice that considers your personal objectives, financial situation or particular needs. All investments carry risk so please consider carefully before investing. Past performance is not indicative of future performance. Graphics, charts and graphs provided for illustrative purposes only.