Making Superannuation Contributions

By making additional super contributions, you can help boost your balance prior to retirement while at the same time potentially lower your marginal tax rate. You can choose whether you want to make concessional or non-concessional contributions, or even a combination of both.

How do I maximise my Super balance to plan for a better retirement?

Maximising your superannuation balance can be done using two types of contributions with both of these contributions types having caps (limits) and different rulings. There are annual caps (limits) on the amount of concessional and non-concessional contributions you can make. If you exceed these limits, you’ll be liable to pay extra tax.

Concessional super contributions

Concessional contributions are made from before-tax income and are taxed at 15% in your super fund. They are currently capped at $25,000 per year, unless you are eligible to use the Carry-Forward Rule. 

  • Compulsory employer superannuation guarantee contributions
  • Salary sacrifice arrangements
  • Any personal super contributions that you claim as a tax deduction

Non-concessional super contributions

Non-concessional contributions are made from after-tax income and are not taxed in your super fund. They are currently capped at $100,000 per year, unless you are eligible to use the Bring-Forward Rule. 

  • Voluntary additional payments made from your take-home pay
  • Any made on behalf of your spouse (married or de facto)
  • A government co-contribution
  • The Low-Income Super Tax Offset (LISTO)

This information has been prepared by IFBA Pty Ltd T/as Pacific Finance Australia ABN 60 108 622 644 Australian Credit Licence No. 391682. Pacific Finance Australia accepts no obligation to correct or update the information or opinions in it. This advice is general and does not take into account your personal objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances.