How you could get a tax benefit this EOFY by topping up your super
Did you know that growing your super could give you a tax benefit? We look at how it works in several different scenarios.
Sponsored by Aware Super. Grab your handy checklist to boost your super in seven days.
Your super is one of your most important assets. After all, it'll play a big role in the way you fund your retirement!
So it makes sense to consider boosting it when you can.
But growing your super could actually give you a tax benefit too.
We're looking at how you could contribute to your super and get a tax benefit.
Just a quick note: Tax legislation regularly gets updated and changed. So it's always worth checking with your super fund or the ATO for the latest information.
1. Boost your super
So, let's talk numbers for a moment.
When your employer makes a contribution to your super fund, it's taxed at 15% and considered a before-tax contribution (also called concessional contributions).
You can also arrange to have an extra portion of your before-tax salary put into your super, which is called salary sacrifice.
You could also boost your super with after-tax contributions, which are contributions from your take-home pay. The good news is that you could also claim a tax deduction on them.
Before you lodge your tax return, you can fill out a notice of intent with your super fund to claim a deduction on your after-tax contributions.
Your super fund will send you with a confirmation letter if you're eligible for a tax benefit, which you'll need on standby when you lodge your tax return.
These contributions are taxed at 15%, which could be lower than your marginal tax rate. And these contributions are now considered concessional contributions.
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2. Spouse contributions
If you want to give your partner a helping hand with their super, it's possible to make a spouse contribution.
But there are some caps to be aware of. Spouse contributions count towards your after-tax contribution cap (which is the same cap for any after-tax contributions you might make).
The good news is that you could get a tax benefit of up to $540 if your partner's income is $37,000 or less and you make a contribution of up to $3,000!
3. Government co-contribution
If you're a low- or middle-income earner, you could get a government co-contribution to help boost your super.
This means that you could get up to $500 added to your super, depending on your income and how much you contribute.
You can check your eligibility with the ATO, but here are some boxes you need to tick to be eligible:
- You must be less than 71 years old at the end of the financial year.
- You must make an after-tax contribution during the financial year.
- You must earn less than $62,488 and 10% of that income comes from work. But remember, from 1 July 2026, the income threshold will increase to $64,293.
When you lodge your tax return, the ATO will work out if you can get a co-contribution. The ATO will automatically deposit the amount into your super account, if you're eligible.
While it might not seem like much on its own, it's important to remember that a small contribution now could can make difference to your super in the long term. You can check out Aware Super's retirement calculator to discover how one contribution can make a difference.
Download Aware Super's checklist to boost your super in seven days
Sponsored by Aware Super. Grab your handy checklist to boost your super in seven days.
General advice only. Consider your objectives, financial situation or needs, which have not been accounted for in this information and read the relevant PDS and TMD before deciding to acquire, or continue to hold, any financial product.
Sponsored by Aware Super Pty Ltd (ABN 11 118 202 672, AFSL 293340), trustee of Aware Super (ABN 53 226 460 365).
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