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Are you on track for a comfortable retirement? Your employer must put at least 11% of your earnings^ into your super, but you may need more. Making extra contributions to your super could help keep your savings on track.

Salary sacrifice for your super

Salary sacrifice is an easy way to make extra payments into your super. Your employer agrees to redirect a portion of your before-tax salary into your super account. It’s generally worthwhile considering if your income is over $37,000.

Benefits of salary sacrificing may include:
  • Lower tax rate – if you make super contributions through a salary sacrifice, these contributions are taxed at a maximum of 15% for most people. Extra tax will apply to higher-income earners if their total income and super contributions are more than $250,000. Your taxable income is lowered when super is paid from your pre-tax salary – so if your effective tax rate is higher than 15%, salary sacrifice can help reduce your overall tax bill
  • Super growth – over time, you’ll enjoy the benefit of compounding returns in your super account. And as your super grows over time, you’ll see how even extra contributions now can mean a lot to your savings at retirement.
After-tax contributions

You can pay money that’s already been taxed straight into your super account. You can make non-concessional contributions to boost your superannuation if you have a little extra from your take-home pay, additional savings, or an inheritance.

Benefits of making after-tax contributions include:
  • Boost your super – even a small amount each week can add up and make a big difference at retirement time.
  • Potential tax benefits – By making after-tax contributions to your super, you can claim a tax deduction and reduce the income tax you must pay – which means more money for you at tax time. Be aware there is a cap on the amount of contributions you can be make
  • Government co-contribution – if you earn less than $58,445 a year, you may be eligible to receive a government co-contribution of up to $500, which would add even more to your balance at retirement. Any amounts claimed as a tax deduction are not eligible for co-contribution.

More information on the government co-contributions, including the eligibility criteria, can be found at ato.gov.au/.

Spouse contributions

This is a great way to support your spouse if they’re on a low income without much super being saved or if they’ve found themselves unemployed or taken a break from work, for example to look after kids. It’s an investment in your loved one’s future and will ease both your lives in retirement. A spouse is a person you’re legally married to or in a de facto relationship with (including same-sex relationships).

You may be able to claim either a full tax offset of $540 if you pay $3,000 or more and your spouse earns $37,000 or less, or a partial tax offset if you pay less than $3,000 or your spouse earns more than $37,000 but less than $40,000.*

Low-income super tax offset

If you earn $37,000 or less, you’ll automatically receive a contribution tax rebate of up to $500 paid into your super fund.

To receive the low-income super tax offset (LISTO), you must:

  • Not have held a temporary resident visa at any time during the income year
  • Have an adjustable taxable income of up to $37,000 per year
  • Earn 10% or more of your total income from employment or business-related activities
  • Have made before-tax (concessional) contributions for the year to a complying super fund

When you lodge an income tax return for the financial year, the ATO will determine your eligibility for the LISTO.

Downsizer contributions

A downsizer contribution is available to anyone aged 55 or over and it allows you to contribute up to $300,000 as an individual or $600,000 as a couple from the sale of your home.

More on eligibility here.

Need advice?

Make an appointment with a Vision Super Financial Planner who will provide information and advice about your super.
Bookings can be made by calling 1300 300 820. Depending on the advice, fees may apply.


^Ordinary Time Earnings (OTE)

* https://www.ato.gov.au/individuals/income-deductions-offsets-and-records/tax-offsets/superannuation-related-tax-offsets

**This information is general advice which does not take into account your personal financial objectives, situation or needs. Before making a decision about Vision Super, you should think about your financial requirements and consider the relevant Product Disclosure Statement and Target Market Determination. Issued by Vision Super Pty Ltd ABN 50 082 924 561 AFSL 225054.

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