Understanding super contributions can seem tricky at first. This Superannuation contribution guide explains all of the types of Super contributions and why they are important to building wealth.
Reasons why I’d contribute to Super
Superannuation is one of the most tax-effective ways to build long-term wealth.
While you are growing your Super, the returns within the super environment are taxed at a maximum of 15%, which is often much lower than your personal tax rate. Certain contributions may also receive a concession on your personal income tax, reducing your tax while you work, depending on the type and amount. Finally, after you retire, the Superannuation fund can switch into ‘pension mode’ and become tax free. Pretty good, right?
How to contribute money to Super
In practice, most people add money to Super via their employer. But you can also use Bpay or direct deposits, depending on your fund.
There are several ways to contribute to your super, each with its own rules, benefits and limits. Knowing the differences can help you maximise opportunities and avoid unintended tax consequences.
Adviser tip: The date your super fund receives a contribution is the date it’s recorded, not the date you made the payment. For example, if you contribute on 29 June but it’s not received until 1 July, it will be counted in the new financial year. Timing matters!
Employer Super contributions (Super guarantee)
If you’re an employee, your employer must contribute a percentage of your earnings into your super fund. This is known as the Super Guarantee (SG).
- The SG rate is 11.5% for FY2025, increasing to 12% from 1 July 2025
- Some employers may contribute more under specific agreements
- These are pre-tax contributions and taxed at 15% when received by your super fund — not in your personal tax return
- Employer contributions count towards your total concessional contribution cap
Using MyGov to find accurate Super information
Finding your Super information in MyGov and ATO can seem complicated. Rask Advice clients follow a simple PDF guide on how to navigate MyGov. Use our MyGov Super PDF or reach out if you get stuck inside MyGov.
Personal Super Contributions
Concessional contributions (pre-tax)
Concessional contributions are the total of contributions that you have received a tax-benefit for. The most common types are:
- Employer SG
- Salary sacrifice
- Lump sum personal contributions that you claim as a tax deduction.
The current annual cap for concessional contributions is $30,000. You may be able to contribute over and above this cap if you meet the conditions to utilise the “carry-forward” provision (explained below).
Lump sum personal concessional vs salary sacrifice
Depending on your preferences and cashflow, you may choose to make additional contributions on a regular basis via your pay cycle, or you may like to make lump sum contributions throughout or at the end of the financial year. Either way, the same contribution limits apply but the way in which you receive the tax benefit varies.
Salary sacrifice involves your employer regularly directing part of your pre-tax salary into your super fund.
- You receive the tax benefit immediately as your taxable income is reduced each pay period
- Your take-home pay is reduced, so it’s worth reviewing your cash flow
Lump sum contributions allow you to contribute when it suits your finances (e.g. end of financial year).
- To claim a tax deduction, you must notify your super fund that you intend to claim a tax deduction. Most commonly, the fund will require you to complete and lodge a Notice of Intent to Claim with the fund before lodging your tax return
- The fund will deduct 15% tax once they receive the notice, and you can then claim the deduction
TIP: If you are considering transferring your super from one fund to another – make sure you have lodged a Notice of Intent to Claim form before moving funds around! Once the balance moves from one fund to another, any additional personal contributions made into the previous fund can no longer be claimed.
Non-concessional Super contributions (after tax)
These are contributions made from your take-home pay or personal savings.
- Non-concessional contributions are not taxed when received by your super fund
- You can’t claim a tax deduction
The current annual cap for non-concessional contributions is $120,000. You may be able to contribute over and above this cap if you meet the conditions to utilise the “bring-foward” provision (explained below).
Bring-Forward Arrangement (Non-concessional contributions)
If you’re under age 75 and want to put more into super than the usual after-tax contribution limit of $120,000 per year, you might be able to use the bring-forward rule. This rule lets you make up to $360,000 in after-tax (non-concessional) contributions over a three-year period, by bringing forward up to two future years’ worth of contributions.
It’s automatically triggered if you contribute more than $120,000 in one financial year, as long as you’re eligible. The maximum you can contribute will depend on your total super balance as at 30 June of the previous financial year. If your balance is too high, you might not be able to use this rule at all. This is a great example of when it’s worth seeking advice as going over the cap can lead to extra tax or penalties.
Carry-Forward Super Concessional Contributions
If your total super balance was under $500,000 at 30 June of the previous financial year, you may be eligible to use the carry-forward rule. This allows you to use any unused concessional contributions from the past five financial years.
In the below example, the individual contributes $65,000 in 2024–25. Normally, that would go over the $30,000 cap but thanks to unused caps from earlier years, they stay within the rules.
The ATO automatically uses the oldest unused amounts first, so the $5,000 from 2019–20 is applied before later years. This helps make sure older entitlements don’t expire (they can only be carried forward for up to five years).
| Financial Year | Concessional Cap | Amount Contributed | Unused Cap Carried Forward |
| 2019–20 | $25,000 | $20,000 | $5,000 |
| 2020–21 | $25,000 | $15,000 | $10,000 |
| 2021–22 | $27,500 | $15,000 | $12,500 |
| 2022–23 | $27,500 | $20,000 | $7,500 |
| 2023–24 | $27,500 | $27,500 | $0 |
| 2024–25 | $30,000 (current year) | $65,000 | Uses $35,000 of unused caps from prior years |
Government Super co-contributions
If you’re a low or middle-income earner, and make a personal after-tax contribution (non-concessional), you could receive a government co-contribution of up to $500, depending on your income and how much you contribute.
| Year | Maximum Entitlement | Lower Income Threshold | Higher Income Threshold |
| 2025-2026 | $500 | $47,488 | $62,488 |
| 2024-2025 | $500 | $45,400 | $60,400 |
Please seek specific advice regarding eligibility criteria to receive a government co-contribution, but you may be entitled to a part-contribution if your income is lower than the ‘Higher Income Threshold’ listed above.
Spouse Super contributions
You can contribute to your spouse’s super to help grow their balance.
- You may receive a tax offset of up to $540 if your spouse earns less than $37,000 p.a.
- If your spouse’s income is between $37,000 and $40,000, you may still receive a reduced (pro-rata) offset, which phases out completely once their income reaches $40,000.
- The contribution must be nominated as a spouse contribution with the receiving super fund
- The spouse contribution counts towards your spouse’s non-concessional contribution cap
- Neither you or your spouse can claim the contribution as a personal tax deduction
Super contribution Splitting
Contributions splitting is where you take some of the concessional contributions you have made to your own super fund in the immediately prior financial year, and move those eligible contributions into your spouse’s super.
You can choose to move up to 85% of your concessional contributions to your partner’s super account. This can be another way to ‘equalise’ balances and may be particularly useful if one member of the household is close to reaching any of the super balance tests that may restrict other strategies.
Adviser reminder: The contribution still counts towards your concessional contribution cap, rather than the receiving spouse’s, even after it’s split.
Downsizer Super Contributions
If you’re aged 55 or over, and have sold your family home, you may be eligible to contribute up to $300,000 (per person) into super in addition to your other contribution caps.
- You must meet eligibility rules (including ownership of the home for 10+ years)
- Downsizer contributions must normally be made within 90 days of receiving the sale proceeds
- You’ll need to notify your super fund that the contribution is being made as a ‘Downsizer contribution’ so it is treated correctly.
What to do now
Ultimately, there are a lot of ways to use Super and build a tax-effective retirement nest egg that can later be paid back to you tax free (in most cases). If you’re overwhelmed, maybe start with the concessional contributions amount – using MyGov >> ATO to find out what you can contribute this year without breaching the cap.
Obviously retirement planning is complex because while your balance is growing, employment is coming to an end, the timing matters, the order of strategies matter, market conditions matter, and so on. So please consider if financial advice is right for you.
See our guide on how much does financial advice cost? The $5,000 – $10,000 you might pay a professional could pay for itself a dozen times over in coming years if the plan is done right – just when thinking about Super contributions. But if we go broader: tax optimisation, investment returns, behavioural support, family planning… the complexity and available strategies multiply.
Reach out to me if you need a hand – even if you’re not a Rask Advice client.
