If you're considering putting more money into your super, and want to know more about how the whole system works, here are the basics. Making extra super contributions will build your retirement nest-egg, as well as provide immediate and long-term tax benefits. So, what are extra super contributions and how much extra super contributions can you make?
You've decided you're going to contribute extra to your super. That's great. But there are limits to how much super you can contribute to your account.
We cover those limits in this article to help you avoid the consequences. If you're age 50 or older, you're eligible for a catch-up contribution and can contribute up to an additional $8,000 in 2026. However, if you're between ages 60 and 63 and your plan allows, you can contribute up to $11,250 as a "super" catch-up contribution in lieu of the standard $8,000.
Adding to your super You can boost your retirement savings by making voluntary super contributions, such as by: setting up a salary sacrifice arrangement with your employer making personal super contributions (and a non-concessional contribution may make you eligible for the government's super co-contribution) transferring any super you have in a foreign super fund arranging for your spouse to. The purpose of this calculator is to provide the combination of contributions you can use to obtain the biggest increase in your super for a given reduction in your take home pay in the current financial year based on the information you provided if applied for the full year. Concessional contributions You can make before-tax contributions, where contributions come out of your pay before income tax, such as salary sacrifice.
You pay 15% tax on this money when it goes into your super (the Australian Taxation Office may apply an extra 15% if your income plus super contributions is more than $250,000 per year.) This compares to normal tax rates, which can be up to 45%. You can grow your super by making payments to it out of your after. Additional tax and super considerations There are other circumstances that can afect how much you can contribute and the amount of tax you pay on your super, including spouse contributions ofsets and downsizer contribution measures for members 55 years of age and over from 1 January 2023.
By contributing extra money to your super, your super balance will grow more quickly, giving you more money to enjoy in retirement. How to contribute more to super Salary sacrifice You can ask your employer to set aside some money from your before-tax salary and put it directly into your super. What are the benefits?
