Putting extra money into your super is one of the smartest ways to build your retirement wealth.
You can contribute up to $30,000 a year to your super balance (including the super your employer pays you) taxed at 15%.
This is effectively a tax saving for most people. Adding $500 monthly could double a 20-year-old's retirement super to over $1 million.
Types of super contributions
There are two types of super contributions: concessional contributions and non-concessional contributions.
Concessional super contributions
Concessional contributions are made from pre-tax income and are taxed within your super fund. These contributions are taxed at the concessional super tax rate of 15%, as opposed to your standard income tax rate.
Concessional contributions include:
all super guarantee contributions from your employer
contributions you make yourself that you claim a tax deduction for (even if you didn't contribute these via salary sacrifice)
Non-concessional super contributions
Non-concessional contributions are those made from your after-tax income, and they are not taxed within your super fund because you've already paid income tax on it.
These contributions are taxed at your standard income tax rate when you lodge your tax return. You can't claim a tax deduction on them.
Most people would only make non-concessional contributions after they've exceeded the $30,000 annual contribution cap. It's not particularly tax-effective.
And if you haven't maxed out your annual concessional contributions in the previous 5 years, you might be eligible to "carry forward" the unused caps from past years (more on this below).
Expert insight
"While the language around superannuation can sometimes seem a bit technical, the principle of superannuation is very straightforward. Super is your bank account for future you. The government provides very favourable tax treatment on superannuation to encourage us to save as much into our future bank account as we can."
Pascale Helyar
Superannuation and wealth expert
Employer super contributions
Your employer is required to make contributions to your nominated super fund. These count as concessional contributions.
Employers are required to pay employees super guarantee contributions towards their super fund. The current super guarantee rate is 12% on top of annual earnings. This is the minimum amount, and some employers choose to pay higher contributions as an employee benefit or perk.
How often should I receive employer contributions?
The super guarantee is usually paid to employees in 4 payments across the year; however, some employers choose to pay this monthly.
If you haven't received a super contribution in more than 4 months, they could be late or missing your payment so it's important to follow up with your employer.
From 1 July 2026, employers will be required to pay their employees' super at the same time as their salary and wages. According to a Treasury statement, "By switching to payday super, a 25-year-old median income earner currently receiving their super quarterly and wages fortnightly could be around $6,000 or 1.5 per cent better off at retirement."
How do I check my super is being paid?
You can see all your super contributions, including your employer contributions and your own contributions (if you've made any), by checking your super statement or transaction history.
You'll find this by logging into your super account's online portal or mobile app. You can also see your super contributions by navigating to the ATO section within your myGov portal online, which lists your super fund/s.
If you discover that you're not getting paid super at all, or not getting paid the right amount, the first step is to speak to your employer. If this doesn't solve the issue, you can report it to the ATO.
Are employer super contributions taxed?
Yes, employer contributions are classed as concessional contributions and taxed within your super fund at a rate of 15%.
You don't need to do anything with this at tax time, it's all taken care of by your super fund. You don't need to declare your employer super contributions when you lodge your personal income tax return either.
Government super co-contributions: What is the $500 superannuation boost?
If you're a low-income earner with annual earnings of less than $60,000 a year, you could be entitled to extra super contributions via the government's superannuation co-contribution scheme.
Under this scheme you could earn an extra $500 a year in government super contributions.
This means you contribute up to $500, and the government will match you dollar for dollar.
There are eligibility criteria to meet, and you also need to make your own personal contributions to your fund. Read our full guide on the government's super co-contribution scheme for eligibility and how to apply.
How much can you contribute to your super?
Concessional contribution cap
You can make up to $30,000 worth of concessional contributions each year. This includes all employer contributions and personal contributions made via salary sacrifice, or those that you're claiming a tax deduction for.
You may also be able to take advantage of the "carry-forward" contribution rule to make larger, lump sum concessional payments. If you have less than $500,000 in super, you can carry forward any unused amount of your annual concessional contributions cap for the past 5 years to make a lump sum carry-forward contribution.
Non-concessional contribution cap
You can make up to $130,000 worth of non-concessional contributions each year. These are the contributions you make from your after-tax income and don't claim a deduction for.
What happens if I exceed my contributions cap?
If you exceed your concessional contributions cap, the additional contributions will be classed as non-concessional. If you exceed your non-concessional contributions cap you'll receive a letter from the ATO listing your options, which essentially boil down to two:
Withdraw the excess contribution and earnings. Your super fund will release your excess contribution and the earnings from that excess contribution back into your bank account. From here, you'll need to include this money (including the earnings) in your income tax return that financial year.
Keep the excess contributions in your fund. If you choose to keep your excess contributions in your fund, your super fund will tax these contributions at the highest tax rate of 47%.
Downsizing super contributions
If you're 55 or older you can make a one-off post-tax contribution of up to $300,000 into your super using the money received from selling your home. The super downsizing scheme is on top of the annual non-concessional super caps of $130,000 a year.
However, it can only be used for the proceeds of selling your family home – not investment property – and you need to have lived there for at least 10 years.
What are the benefits of making extra super contributions?
The more money you contribute to your super, the more it'll grow. Super benefits from compound growth, which means your investment returns get reinvested and start earning their own returns. Also, making extra super contributions helps you reduce your income tax while you're still working. Adding more to your super while you're young and still working can help you retire with a much bigger balance later on.
Example
Let's say you're 20 years old, earning $70,000 a year with a super balance of $20,000. If you make no additional contributions on top of your employer's contributions, your super balance at retirement is estimated to be $543,599.
If you started to contribute $500 a month (a bit over $100 a week), your estimated super balance jumps to $1,002,393. That's almost double! By starting to make extra contributions while you're young, it can have a huge impact on your final super balance.
If you're not able to make additional contributions, you can still boost your super by comparing super funds and making sure you're in a low-fee, high-performing fund.
When should I start making extra contributions?
There's no wrong time to do it! The younger you start the more you'll benefit from compound growth in your super. However, when you're young you're also less likely to have huge amounts of disposable income to add to your super.
Yes you can. If you're going to make a one-off lump sum contribution into your super, doing this before the end of financial year will mean you can claim a tax deduction for your super contribution.
How to make super contributions
There are a few ways you can make super contributions.
Employer contributions. This is done for you by your employer, all you need to do is make sure they've got your super fund details.
Simple bank transfer. You can add money into your super at any time by making a bank transfer from your bank account, just like a normal transfer.
Salary sacrifice. This is something that your employer can set up and manage for you, you just need to discuss how much you want to sacrifice from your pay.
Recurring transfer. Similar to a recurring bank transfer or payment, you can set up an ongoing, recurring payment from your bank account to your super account of an amount that you choose.
Frequently asked questions
This is the amount of super your employer is legally required to pay as a super contribution on your annual earnings. The current super guarantee rate is 12%.
You can contribute as much or as little as you want, as long as you don't exceed the contribution caps (detailed above). Only contribute money that you know you don't need again for a long time, because once it's in your fund you can't access it until retirement.
Yes, you can make a one-off lump sum super contribution or you can make recurring payments weekly or monthly – it's up to you.
No, you can't withdraw your employer or personal super contributions until you meet a condition of release. This includes reaching your preservation age (this is 60 for most people) and retiring, or turning 65.
Under the First Home Super Saver Scheme, first home buyers can access up to $50,000 in voluntary super contributions to put towards a home deposit.
Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards.
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TO Alison Banney– Hello alison- I did write my question on an earlier Form–To advise that I have A Proven program that I think CAN Help any of “The Worst performing” Super Funds–and I write to ASK–IF You could put Me in contact with A Fund that you think would listen to what I CAN Offer them–which CAN Boost their Returns%–I did ask to make Contact on LinkedIn–Kev Gilbee
Finder
SarahSeptember 19, 2024Finder
Hi Kev,
Alison is currently on parental leave. Your best bet is to contact funds directly via their contact forms on their websites. Best of luck!
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Concessional super contributions
TO Alison Banney– Hello alison- I did write my question on an earlier Form–To advise that I have A Proven program that I think CAN Help any of “The Worst performing” Super Funds–and I write to ASK–IF You could put Me in contact with A Fund that you think would listen to what I CAN Offer them–which CAN Boost their Returns%–I did ask to make Contact on LinkedIn–Kev Gilbee
Hi Kev,
Alison is currently on parental leave. Your best bet is to contact funds directly via their contact forms on their websites. Best of luck!