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5 ways you can contribute to your super and potentially, save tax at the same time.


5 ways you can contribute to your super and potentially, save tax at the same time.

Even small sums of additional money contributed to your super over your lifetime can make a huge impact on your lifestyle in retirement. Additionally, the potential effect it could have on your individual tax return can be quite appealing.

So here are 5 ways you can contribute to your super and potentially, save tax at the same time.

1. Salary Sacrifice

Salary sacrifice reduces the income that is taxed at your marginal tax rate.  You can sacrifice a portion of your pay, to make contributions. These additional amounts reduce your taxable income, which in turn reduces the amount of tax you pay. These contributions will be taxed at 15%, (inside the superannuation fund) but this could potentially be lower than your marginal tax rate. You will need to talk to your employer about commencing this arrangement.

2. Personal Contributions

You can also make a personal contribution and claim a tax deduction in your personal return. The contributions will be taxed at 15% by your super fund but could be offset by savings in your personal tax return.

3. Spouse Contributions

There is also the option of making a spouse contribution. This is where you make a contribution to your spouse’s super fund and you can claim a deduction in your own personal income tax return (subject to certain requirements).

4. Unused Concessional Contributions

The legislation has changed, which means you can now carry forward any of your unused concessional contribution cap for up to five years. As long as your total super balance is less than $500,000 prior to 30 June, you can utilise those unused contributions in a future year. Imagine if you were able to use these in a financial year where you had a large capital gain and the difference that it could make to the tax you needed to pay.

5. After-Tax Contributions

You can make after-tax contributions where you don’t claim a deduction, but any income received is segregated within a concessionally taxed environment. As all income received while you are accumulating your super balance is taxed at 15%, rather than your marginal tax rate outside of the superannuation environment.

In Summary

Superannuation contributions have the potential to be a two-for-one offer. You may be able to reduce your taxable income and save money towards your retirement in a concessionally taxed environment.

Next Steps

As superannuation can be quite complex, we recommend that you speak to your financial adviser before you make any decisions. Please complete the following booking form and Jo-Anne Davis, SMSF Accountant will contact you to arrange a free consultation.


*Please note, making super contributions are not guaranteed to increase your wealth or reduce your tax. Please contact your financial advisor before considering any contribution strategies. 

The advice provided here is general in nature only as, in preparing it we did not take account of your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs and objectives. You should consider the relevant Product Disclosure Statement before making any decision relating to a financial product.