Super contributions

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 from your pre-tax income in the form of salary sacrificing into super
• some spouse super contributions
• 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.

They are not taxed again in your fund or in your tax return, unless you exceed the non-concessional cap. You can't claim a tax deduction on them.

Most people would only make non-concessional contributions after they've exceeded the $32,500 annual contribution cap.

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.

Remember if you're self-employed or a sole trader, paying yourself super is your own responsibility.

How often should I receive my 12% employer contributions?

Since 1 July 2026, the 12% super guarantee has been paid to employees on payday under Payday Super, which requires employers to pay super promptly. The super guarantee is now calculated on your qualifying earnings (previously ordinary time earnings), and the maximum super contribution base is now an annual figure — $270,830 for the 2026-27 financial year.

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%.

What is Division 296 tax?

From 1 July 2026, an additional Division 296 tax applies to large super balances: an extra 15% tax on the share of your super earnings attributable to a total super balance above $3 million, plus a further 10% on the share above $10 million. Both thresholds are indexed (in $150,000 and $500,000 increments) and only realised earnings are taxed. First assessments, for the 2026-27 income year, won't be issued until the second half of the 2027-28 income year.

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.

Concessional contribution cap

You can make up to $32,500 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 excess is added to your assessable income and taxed at your marginal tax rate, with a 15% tax offset for the contributions tax already paid in your fund. You can elect to release up to 85% of the excess from your super fund to help pay the extra tax; any excess you don't release then counts towards your non-concessional contributions cap. 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.

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.

Can I add a lump sum to my superannuation?

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

• What is the super guarantee?

  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%.

• How much should I contribute?

  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.

• Can I make a lump sum contribution?

  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.

• Can I withdraw my super contributions?

  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.

• Can I withdraw my super contributions for a house deposit?

  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.

To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten and reviewed by Pascale Helyar, a member of Finder's Editorial Review Board.

Written by

Alison Banney

Editorial Manager, Money

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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. See full bio

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