Six Ways to Boost Your Super

As 2025 kicks off, now’s the perfect time to think about your superannuation and how you can grow it before the end of the financial year.

The good news? The 2024-25 financial year brought some key changes that make it easier than ever for working Australians to contribute more to their super and build wealth for the future.

Why should you care? Well, superannuation contributions can come with big tax perks. Concessional contributions, for example, are taxed at just 15%, much lower than the tax you pay on your regular income. So, by tweaking your super contributions strategy, you could potentially save on income tax and see your super balance grow faster.

With six months left in the financial year, here are six ways you can take advantage of these changes and get more money into your super.

1. Start a Salary Sacrifice Plan

Salary sacrificing is an easy way to boost your super. It’s a simple agreement between you and your employer where a fixed percentage or dollar amount of your pre-tax salary is paid directly into your super. The best part? Super contributions are taxed at just 15%, which is usually lower than your income tax rate. This helps lower your taxable income, so you end up paying less tax.

The concessional contribution limit has increased from $27,500 to $30,000 from 1 July 2024. Just remember, if you exceed the limit, tax penalties apply… so make sure to keep track!

2. Make Concessional Contributions

If salary sacrificing isn’t your thing, an alternative to an employer sacrifice arrangement is to use after-tax money to deposit funds directly into your account. These contributions can be claimed as a tax deduction, meaning they’ll be taxed at 15%.

To claim this deduction, you’ll need to fill out an ATO form, notifying them that you intend to claim a deduction on your personal contributions. Your super fund will also need to acknowledge your contribution.

And remember, the concessional contribution limit for the 2024-25 financial year is $30,000—up from $27,500 last year.

3. Use Unused Concessional Contributions

If you didn’t make full use of your concessional contributions in previous years, you may be able to carry over unused contributions for up to five years!

Here’s what you need to know:

• You must have unused concessional contributions from the past five financial years.
• Your total super balance must be under $500,000 as of June 30 of the last financial year.
• To track your unused concessional contributions, log in to your myGov account and use the ATO’s online services.

4. Make Non-Concessional Contributions

Non-concessional contributions come from after-tax income or savings. While you can’t claim these as a tax deduction, they’re still an efficient way to build your super—especially in the long run. For example, if you sell an asset and get a lump sum, you might consider putting some of that into your super.

For those aged 60 and over, there’s an added bonus: non-concessional contributions are tax-free once your super is in pension phase, meaning tax-free investment earnings and pension payments.

The non-concessional contributions limit for the 2024-25 financial year is $120,000. But if you’re under 67, you can take advantage of the “three-year bring-forward rule” and contribute up to $360,000 in one year. Just be careful—after you use the bring-forward rule, you can’t make further non-concessional contributions for three years.

5. Take Advantage of Downsizer Contributions

If you’re aged 55 or older and sell your primary residence, you can contribute up to $300,000 into your super from the proceeds. Couples can each contribute up to $300,000, so that’s up to $600,000 in total.

What’s great about downsizer contributions is that they don’t count toward your annual contributions cap, and they can be made in addition to other non-concessional contributions. Just keep in mind that there are some specific rules around downsizer contributions, so make sure to check the ATO website for the details.

6. Consider Super Contributions Splitting

If you’re in a relationship, you can split up to 85% of concessional contributions each year with your partner. This is a great way to equalise super balances between you and your spouse, especially if one of you is falling behind in the super race.

There are a few conditions here: you need to be under 60 (or between 60 and 65 and still working), and your super fund must allow splitting. Check the ATO website for more information on how it works.

Need Help? Consider Speaking to a Financial Adviser

Superannuation and retirement planning can get complex fast, and it’s crucial to stay on top of contribution limits and tax penalties. If you’re unsure about your options or need some help navigating the rules, a licensed financial adviser can help you make the most of these opportunities and set you on the path to a more secure retirement.

With a little planning and some strategic contributions, you can grow your super faster, pay less tax, and get closer to the retirement you’ve always wanted.

All information in this article is general in nature – see our full disclaimer.