As June 30 approaches, it’s a great time to review your superannuation contributions. Making the most of your before-tax (concessional) and after-tax (non-concessional) contributions before the end of the financial year can boost your retirement savings and potentially reduce your tax bill. The best strategies can depend on your stage of life, so we’ve broken it down by age group, covering key contribution types, caps, tax implications, and examples for:
- Under 30s
- 30–49
- 50–59, and
- 60+
Under 30: Laying the groundwork early
If you’re in your 20s, retirement might feel ages away, but small steps now can make a big difference later. Key strategies for under-30s involve taking advantage of incentives that give your super a boost without costing a fortune, including tax-effective salary sacrifice and government contributions.
1. Start salary sacrificing (Concessional contributions)
Even a modest amount of salary sacrifice can grow substantially over time thanks to compound interest. By sacrificing a portion of your before-tax salary into super, you only pay 15% contributions tax on that money, instead of your normal income tax rate. For many young workers, that means a tax saving of 15–20 cents on the dollar (or more for higher earners). For example, if you’re in a 34.5% marginal tax bracket (including Medicare levy), every $1,000 you salary sacrifice saves you roughly $195 in tax (you pay $150 in contributions tax instead of $345 in income tax). In other words, it costs you only ~$805 in take-home pay to get $1,000 into your super.
If your budget allows, consider setting up a regular salary sacrifice with your employer – even $50 a week can add up. Just remember that the total of your employer’s SG contributions (currently 11.5% of your salary in 2024–25) plus any salary sacrifice and personal deductible contributions should not exceed $30,000 for the year. Also, if you do any personal concessional contributions (where you plan to claim a tax deduction), be sure to lodge a “Notice of intent to claim” form with your super fund before you file your tax return, to ensure that those contributions are treated as tax-deductible.
Example – Salary Sacrifice: Olivia is 25 and earns $60,000. Her employer contributes $6,900 (11.5%) into super for her this year, which is part of her $30k cap. Olivia decides to salary sacrifice an extra $5,000 this year (around $416/month). This will incur $750 in contributions tax (15%) inside super, but if she took that $5k as salary she’d be taxed at 34.5%, or about $1,725. By sacrificing, she saves roughly $975 in income tax for the year, while boosting her super by the full $5,000 (less the $750 tax). Over time, these early contributions will compound, and Olivia’s 40-odd years of investment growth on that money will far outweigh the small reduction in her take-home pay now.
2. Take advantage of the government co-contribution (free money!)
If you (or your spouse) earns under $60,400 (FY 2024–25) and make an after-tax super contribution, you could snag a government co-contribution when you lodge your tax return. For 2024–25, the maximum co-contribution is $500 – available if you contribute at least $1,000 of your own after-tax money and earn $45,400 or less. The co-contribution tapers down for incomes between ~$45k and ~$60k and ceases at $60,400+. It’s essentially a 50% return on your contribution for eligible low-to-middle income earners – definitely worth exploring if you can afford to put a bit of your savings into super.
Example – Government Co-contribution: Ben, age 28, works part-time earning $40,000. He puts $1,000 from his savings into his super fund as a non-concessional contribution. Because his income is under the lower threshold (~$45.4k), Ben is eligible for the maximum $500 government co-contribution. After he lodges his tax return, the government will automatically deposit $500 into his super. Ben just turned his $1,000 contribution into $1,500 in super – a 50% boost – courtesy of the ATO. (Note: Even if you earn up to $60k, you may get a partial co-contribution; for example, at $50k income, the max co-contribution would be lower, but still “free money” on the table.)
3. Consider the First Home Super Saver (FHSS) Scheme
Buying your first home in the future? The FHSS scheme lets you save part of your deposit inside super to take advantage of the lower tax rate. You can make voluntary contributions (concessional or non-concessional) to super, then later withdraw those contributions (plus investment earnings on them) to use for a first home deposit. The benefit is that concessional contributions and their earnings are taxed at 15% in super, and withdrawals are taxed at your marginal rate minus a 30% offset – usually a better outcome than saving in a regular bank account. You can contribute up to $15,000 per year and withdraw a maximum of $50,000 in total under FHSS. This strategy primarily makes sense if you’re at least a few years away from buying (since the money needs to go into super and be drawn out later) and you’re on a taxable income (so you gain from the tax savings). It’s popular with 20-somethings trying to turbocharge their house deposit savings.
4. Small after-tax contributions and other tips
Even if you don’t qualify for a co-contribution, any after-tax money you tip into super while you’re young will set you up with a larger balance to grow over time. There’s no tax on non-concessional contributions going in, and since you likely won’t hit the $120k cap, you have flexibility to add whatever you can afford. Also, if you have a spouse or partner and one of you has a low income (for example, one is studying or taking time out of work), look into the spouse contribution tax offset: if you contribute to your low-earning spouse’s super, you can receive an 18% tax offset on up to $3,000 contributed. That’s a max offset of $540 if your spouse’s income is $37,000 or less (phasing out at $40,000). While many under-30s might not be married or might have similar incomes, this could apply in situations like one person in a couple doing postgraduate study. It’s a nice way to get a tax break and boost your partner’s super.
Ages 30–49: Growing and Managing Your Super in Mid-Career
For those in their 30s and 40s, superannuation starts to become a more pressing part of financial planning. You’re likely in your prime working years, possibly juggling a mortgage and kids, so the goal is to balance immediate needs with future savings. Key strategies for this group include maximising tax-effective contributions (especially if your income is higher now), catching up on any missed contributions, and leveraging spouse strategies if applicable.
1. Maximise concessional contributions (within the $30k Cap)
During mid-career, incomes tend to rise – making concessional contributions more valuable due to higher marginal tax rates. Every dollar you contribute to super before tax saves you the difference between your marginal tax rate and 15%. For example, if you’re in the 39% tax bracket (including Medicare levy), a salary-sacrificed dollar saves you 24% in tax (39% minus 15%). If you’re at the top 47% bracket, the tax saving is 32% per dollar contributed (47% minus 15%). That’s significant! Consider increasing your regular salary sacrifice, or if you get an annual bonus or a windfall, contribute some of it to super and claim a tax deduction. Just be careful to stay within the $30,000 cap (remember to include your employer’s contributions in that total).
Tip: The compulsory Super Guarantee is 11.5% of your salary in 2024–25, and it’s scheduled to rise to 12% from July 2025. If you’re on a high salary, these larger employer contributions could inch you closer to the cap. For instance, someone on a $250k salary would get about $28,750 in SG this year. Keep an eye on your year-to-date super contributions (your fund’s app or statements should show this) to avoid unintentionally breaching the cap with extra salary sacrifice. If you are close to the cap, you can ask your payroll to limit further salary sacrifice for the year, or delay any personal deductible contributions until the next financial year.
2. Use catch-up contributions (carry-forward rule)
Life isn’t always a straight line – you might have taken parental leave, had a career break, or just weren’t able to contribute as much in earlier years. The good news is, since 2018–19 you can carry forward unused concessional cap amounts for up to 5 years if your total super balance was under $500,000 on the previous 30 June. This is a fantastic opportunity in your 30s and 40s to “catch up” when you have the financial capacity.
How it works
Say in the past few years you didn’t max out the cap. Perhaps last year (2023–24) you only contributed $10k of the $27.5k cap, leaving $17.5k unused. That unused portion can be added on top of this year’s $30k cap, letting you contribute $47.5k concessional in 2024–25 if you have the resources. You can accumulate unused amounts from up to 5 prior years (rolling basis). Importantly, unused amounts from 2019–20 will expire after 30 June 2025 – so this is the last chance to use any cap space from that year. Don’t leave those tax breaks on the table if you can help it!
Example – Catch-Up in Action: Lisa is 37. She returned to work two years ago after caring for her young children, but during her career break from 2019–2022, she contributed very little to super. Now she’s back full-time with a good income. Her total super balance is $200k (well under $500k). With her adviser’s help, Lisa checks her contribution history: she has unused cap amounts of $15k from 2019–20, $25k from 2020–21, and $10k from 2021–22. That’s $50k total carry-forward available. In 2024–25, in addition to the standard $30k cap, she could contribute up to $50k extra as concessional contributions, utilising those carry-forward amounts. If she has the cash (perhaps from an inheritance or savings), she could, for example, make a $50k personal tax-deductible contribution to super before June 30 and claim it against her income, netting a hefty tax refund. This would massively boost her super in one go. (Lisa will need to lodge a notice of intent and ensure she doesn’t exceed what her income can offset – but she can carry any leftover unused cap forward further if she doesn’t use it all now.)
Carry-forward contributions are especially useful in a year when your income is high (or you have a big capital gain to offset) – you can dump a large amount into super and potentially drop yourself into a lower tax bracket, all while padding your retirement fund. Just remember: unused cap amounts only last 5 years, then they disappear. So plan ahead and use them in time. For instance, any unused cap from 2018–19 expired in July 2024, and unused from 2019–20 will expire in July 2025, as noted.
3. High income? Remember Division 293 tax
If you’re earning above $250,000 (including concessional contributions), be aware that you’ll get a Division 293 tax bill from the ATO – this is an extra 15% tax on your concessional contributions above the $250k income threshold. Essentially it reduces the tax advantage for very high earners by making their super contributions taxed at 30% instead of 15%. Even so, you’re usually still better off contributing: paying 30% tax in super is still significantly lower than the top marginal rate of 47%. In fact, a high earner on 47% still saves about 17% on contributions even with Div 293 applied. Just factor this into your planning – the ATO will send a notice and you can choose to pay the tax from your pocket or release money from your super to cover it. The $250k threshold includes your taxable income plus your concessional contributions, so if you’re near that line, an extra large contribution might tip you over.
4. Ramp up (or start) after-tax contributions if possible
In your 30s and 40s, many people prioritise mortgages, education costs, etc., so not everyone has spare cash to contribute after-tax to super. But if you do find yourself with extra savings, say a bonus, inheritance, or proceeds from selling an asset, contributing some of it as a non-concessional contribution can set you up for greater tax-free earnings down the track. You have a generous $120k annual limit (or more with bring-forward), but you don’t have to contribute that much. Even a $10k or $20k deposit into your super can grow significantly over the decades to come.
One thing to watch: make sure your total super balance isn’t too high if you want to contribute after-tax. If, say, you’ve been a super saving superstar and by your late 40s you’ve accumulated near $1.9 million, you could be restricted or barred from making non-concessional contributions. But for most in this age range, that’s not an issue yet.
Also, remember you won’t get a tax deduction or immediate tax benefit for non-concessional contributions (aside from the special cases like co-contribution or spouse offset mentioned below). The benefit is long-term: your money is now in the low-tax super environment (15% on earnings, and 0% in pension phase), rather than being invested in your own name where you might pay higher tax on interest, dividends, or capital gains each year.
Bring-Forward Option: If you’re planning a large contribution (e.g. using an inheritance or big asset sale proceeds), you might use the bring-forward rule to contribute up to $240k (if using 2 years) or $360k (using 3 years) in one hit. Eligibility for the full $360k depends on your total super balance (must be below ~$1.66m to use all three years). For example, if your balance is, say, $1.5m at June 30 and you’re 45 years old, you could contribute $300k or even $360k at once (assuming you haven’t triggered a bring-forward recently) – this could be useful if you sold an investment property or received a large sum you want to shelter in super. Just be absolutely sure you won’t need that money until retirement; once in super, it’s generally locked away until preservation age.
5. Spouse contribution strategies
Mid-career is often when one partner might take time out of the workforce or go part-time (for childcare or other reasons). If you’re a dual-income household with one spouse earning significantly less, use the super system to your advantage as a couple:
Spouse contribution tax offset
As mentioned earlier, if one spouse earns under $37k (up to $40k for partial), the higher-earning spouse can contribute to the low-earner’s super and receive up to a $540 tax offset. For example, Priya earns $110k and her husband Raj earns $30k. If Priya contributes $3,000 to Raj’s super, she’ll get the maximum $540 tax offset on her tax return, and they’ve moved $3k of family savings into Raj’s super for future growth. It’s a win-win, particularly since Raj’s lower income means he might not be contributing much to super during those years.
Contribution splitting
Another way to balance super between spouses is contribution splitting. If you have much higher super than your partner, you can elect to transfer up to 85% of your prior year’s concessional contributions into your spouse’s super account. Usually, people do this after the financial year ends (e.g., during 2024–25 you could split 85% of your 2023–24 contributions). Why bother? Two reasons: (1) It helps even out your super balances, which can be important later due to the $1.9m transfer balance cap for tax-free pensions. You want each of you to have room to move $1.9m into pension phase, rather than one spouse hitting the cap and the other being underfunded. (2) If one spouse is older and nearing retirement, and the other is younger, splitting can shift money to the younger spouse’s super – potentially allowing the older person to stay under certain limits or qualify for things like the age pension or tax offsets. Note that you can only split concessional contributions (and only up to the 85% because 15% was paid in tax). This is something to review as a couple, especially in your 40s and 50s if there’s an imbalance in super.
6. Don’t forget co-contribution (if eligible)
It’s not just for under-30s – if you or your spouse have a year of low income (perhaps you went part-time or had unpaid leave for a while), you might qualify for the government co-contribution too. The rules are the same (under $60,400 income, under age 71, at least a $1,000 personal after-tax contribution, etc.). For example, if in one year your income drops because you went back to uni or took maternity leave, consider throwing $1k into super to grab the free $500 from the government. Every little bit helps.
Example – Family Strategy (30s/40s): James (age 35) works full-time earning $100,000; his wife Emily (32) is home with their toddler and has no income this year. James maxes out his own concessional cap by salary sacrificing (his employer’s $10.5k SG + $19.5k salary sacrifice = $30k). This saves him about $5,850 in tax he would have paid on that $19.5k (assuming a 39% bracket). They also decide James will contribute $3,000 to Emily’s super. Because Emily’s income is $0 (definitely under $37k), James will receive a $540 tax offset for that spouse contribution. Effectively, it cost their family $2,460 to get $3,000 into Emily’s super after accounting for the tax offset – a nice incentive. Moreover, they plan that next financial year, once Emily is back at work part-time, she will use some of James’s split contributions from this year to boost her own super. Over time, these tactics keep their super balances more even and maximise their combined tax benefits.
Bottom line for 30–49
Contribute as much as you comfortably can, up to your caps – your future self will thank you. Use the tools available (carry-forward, offsets, co-contributions, splitting) to optimise as a household. And remember, super is a long game: early contributions have decades to grow, so this stage of life is critical for building that nest egg. Just be sure not to neglect shorter-term needs (emergency fund, home loan, etc.) in the process.
Ages 50–59: Super-charging your retirement savings
In your 50s, retirement may be on the horizon. These years are often your last chance to make substantial contributions and take advantage of super’s tax breaks while you’re still earning an income. Many people in this age bracket also downsize homes, receive inheritances, or sell businesses, all of which can be leveraged to bolster super. Here are the key end-of-financial-year strategies for the 50–59 group:
1. Use your full concessional cap (and catch-up, if available)
If you’re not already maxing out the $30,000 concessional cap each year at this point, strongly consider doing so, budget permitting. In your 50s, you might have fewer family costs (maybe the kids have flown the coop) or you might be at peak earnings, an ideal scenario to redirect extra income into super and reap tax benefits. Every dollar contributed at 15% instead of, say, 39% or 47% tax is more money working for you in retirement.
Check for any carry-forward cap you can use. Many in their 50s have total super balances below $500k (especially women who took career breaks or anyone who hasn’t had consistent contributions), which means you could have unused cap from the last few years banked up. As noted earlier, unused amounts from up to five years prior can be added to this year’s cap. Important: 2024–25 is the first year the concessional cap is $30k (it was $27.5k in recent years), and also the year that unused amounts from 2019–20 will expire if not used. So, for example, if you haven’t made many voluntary contributions in 2019–2024, you could have a sizeable cumulative unused cap. Some folks in their 50s may find they can contribute $50k, $80k, even $100k+ as concessional this year by utilising carry-forward. That could create a large tax deduction.
Example: John is 55. He’s been busy running his business and only ever relied on employer contributions (~$10k/year) and never salary sacrificed. His total super is $300k. John sells a portion of his business this year and has a high income plus a capital gain. He discovers he has about $75,000 of unused concessional cap carried forward from the past 5 years. In 2024–25, he contributes an extra $75k to super (on top of his normal employer contributions) and claims it as a tax deduction. This uses up his carry-forward room. The contribution is taxed 15% in the fund, but John saves tax at his marginal rate (let’s assume 39%), meaning on that $75k he saves roughly $18,000 in net tax after the 15% in super – a substantial boost to his finances. Plus, he’s now moved $75k of his wealth into a protected, long-term retirement account.
If you’re going to make a large catch-up contribution like this, plan ahead: ensure you have enough taxable income to justify the deduction (you can’t create a tax loss just from personal super contributions, excess deductions would carry forward unused). And be mindful of cash flow; don’t contribute money you need in the short term.
2. Consider a Transition to Retirement (TTR) Strategy (if 55+)
Once you hit preservation age (which is 59 for those born before July 1964, and 60 for everyone by 1 July 2024), you can start tapping your super even if you’re still working, via a Transition to Retirement income stream. In your late 50s, a TTR strategy can be powerful when combined with making max contributions:
How TTR works
You convert some of your super into a TTR pension (an account-based pension) while continuing to work. You’re allowed to withdraw between 4% and 10% of the account balance each year as income. Under age 60, those withdrawals are taxable at your normal rate but with a 15% tax offset (after 60, withdrawals become tax-free). Meanwhile, you simultaneously increase your salary sacrifice to super (or personal contributions) to reduce your work income by a similar amount. Essentially, you’re swapping out some salary (taxed at say 32–47%) for pension income taxed at a lower rate, and shovelling the salary into super at 15% tax. The result: your take-home pay stays about the same, but your super balance grows faster because you’ve added extra contributions with minimal net cost.
Example: Julie is 58, earns $80,000, and has $500,000 in super. Her preservation age is 58, so she’s eligible for TTR. She opens a TTR pension with $200k of her super. This year, she draws the maximum 10% (i.e. $20,000) from that pension. She uses that $20k to live on alongside her salary. Meanwhile, she salary sacrifices an additional $20,000 of her salary into super (bringing her total concessional contributions to the $30k cap). Before, she was paying perhaps ~34.5% tax on that $20k of salary; now it’s in super at 15%. The $20k pension she withdrew is taxed at her marginal rate (~34.5%) but with a 15% offset, so effectively ~19.5%. Net effect: she’s paid about $3,900 tax on the pension withdrawal, $3,000 tax on the sacrificed $20k (inside super), totalling $6,900. If she had just taken her full $80k salary, that $20k portion would’ve been taxed ~$6,900 anyway – so her take-home is similar. But now she has an extra $20k contributed in super that will grow for retirement (and after 60, she can stop the TTR and convert all to a full tax-free pension). Over 2–3 years, this strategy can significantly boost her super balance right before retirement.
TTR strategies can be complex and need to be managed (there are caps on pension withdrawals and you need to keep an eye on contribution limits). It’s wise to get personal advice. But if you’re in the 55–59 range and still working, it’s worth asking your adviser about this tactic to accelerate your super savings in a tax-effective way.
3. Downsizer contributions (if 55+)
Many Australians consider selling the family home around their 50s or 60s – maybe to move somewhere smaller or to free up capital for retirement. The downsizer contribution is a special contribution to super that does not count toward the usual caps. If you’re 55 or older and sell your principal residence (which you’ve owned for at least 10 years), you can contribute up to $300,000 of the sale proceeds into your super (and so can your spouse, for a possible $600k total). This can be done even if you’re not working, even if you’re over 75, and even if your total super balance exceeds $1.9m (though think about tax implications of that) – downsizer contributions are an exception to a lot of the usual rules. The money goes in as an after-tax (non-concessional) contribution, but it doesn’t use up your $120k cap; it has its own separate limit of $300k. You must make the contribution within 90 days of receiving the sale proceeds (generally settlement), and you need to submit the appropriate form to your super fund. This is a one-time opportunity (you can only use downsizer for one home sale in your lifetime), so make it count.
Example: Ravi and Anya, 57 and 56, sell their large family home to move to a townhouse. They make $1.2 million from the sale. They decide to put the maximum $300,000 each into their super via downsizer contributions. That’s $600k total boosting their superannuation instantly. This doesn’t affect their bring-forward or other caps at all. Now, that $600k will enjoy the concessional 15% earnings tax (and later 0% in pension phase), versus if they kept it invested outside, the earnings could be taxed at their marginal rates. Downsizer contributions give their retirement savings a huge boost in one hit.
Downsizer contributions are extremely useful if you find yourself asset-rich (in your home) but cash-poor in super. They allow you to shift some of that home equity into super to fund your retirement. Just remember, once the money is in super, it’s meant for retirement – you’d generally need to meet a condition of release (like retiring or turning 65) to access it again.
4. Non-concessional bring-forward in your 50s
If you haven’t yet used the bring-forward rule and you want to make a big after-tax contribution before retiring, your 50s can be a smart time to do it. Perhaps you received an inheritance, or you sold a holiday house or a business, using those funds to contribute to super can lock in long-term tax savings. As mentioned, you can contribute up to $360k as a lump sum under bring-forward (3 years’ worth) if your total super balance was under $1.66m on 30 June prior. If your balance was between ~$1.66m and $1.78m, you could do up to $240k (two-year bring-forward). Above ~$1.78m, you’re limited to the standard $120k with no bring-forward. And at $1.9m+ total, you can’t add non-concessional money at all.
It’s worth noting that from age 67 onward, you no longer need to meet a work test to make non-concessional contributions (that rule was abolished in 2022) – so you can contribute after-tax even if you’re retired, up to age 75. There’s no age-based restriction on using bring-forward either, as long as you’re under 75 in the year you trigger it. For example, a 74-year-old in 2024–25 can still trigger a bring-forward (provided they do it before 28 days after the month they turn 75). But for most, the 50s or early 60s is when they pull this trigger.
Example: Maria is 59 and plans to retire at 60. She has saved up $200k outside of super from years of investments. Since her total super balance is $800k (under all thresholds), she decides to make a $200,000 non-concessional contribution this year. This will trigger the bring-forward over 3 years. She’s using only part of her $360k limit, which means she won’t be able to contribute more non-concessional for the next two years without exceeding it. But that’s fine, as $200k was what she wanted to add. Now her super is $1 million. The advantage is that $200k can now earn investment income taxed at 15% (and soon 0% when she enters pension phase after retirement), instead of being taxed at Maria’s personal tax rate each year. Over a long retirement, this could save her tens of thousands in taxes on her investment earnings.
5. Small business CGT contributions
For those who are business owners, your 50s might be when you’re thinking of selling the business or retiring from it. The small business CGT concessions not only can reduce the capital gains tax on the sale, but also allow additional contributions to super beyond the usual caps. Without diving too deep (as this is a complex area), two key concessions are: the 15-year exemption and the $500k retirement exemption. Under certain conditions, proceeds from the sale of a business (or business asset) can be contributed to super under the “CGT cap” – which is separate from the $30k or $120k caps. The lifetime limit for the CGT cap is currently $1.705 million (indexed) for the 15-year exemption and $500k for the retirement exemption. These are one-offs and have a lot of rules (age 55+ and retiring, business under $2m turnover or other tests, etc.). The main point is: if you’re selling a business, talk to a financial planner or accountant about maximising your super via these special contributions. They could allow you to potentially shelter a large chunk of the sale in super without paying tax on the way in.
Example – putting it all together (50s): Let’s illustrate a scenario: David, 54, and his wife Carol, 53, are planning to retire around 60. They own a home (planning to downsize in a few years) and David also recently sold his share in a small business for a profit. This year, they implement several strategies:
-
- David uses $50,000 of unused concessional cap space (from prior years) to make a personal deductible contribution, greatly reducing his taxable income from the business sale.
- Carol has been out of the workforce, so David also puts $3,000 into her super and claims the $540 spouse tax offset.
- With some proceeds from the business sale, they make a non-concessional contribution of $300,000 into Carol’s super in June. This triggers bring-forward for her (covering 3 years). They choose Carol for this because her super balance was lower than David’s.
- In two years, when Carol turns 55, they plan to sell their home. They will then use the downsizer contribution to add $300k each into super.
By age 60, thanks to these strategies, David and Carol significantly increase their combined super. David’s catch-up concessional contributions saved a lot of tax on his business sale, and their downsizer contributions will give them a hefty tax-advantaged war chest for retirement. They are also mindful of the transfer balance cap and so by balancing contributions between them, each can stay within the limit when they convert to pension accounts.
At this stage of life, every contribution counts that much more because you’ll likely be drawing on these funds soon. It’s a great time to seek professional advice to optimise your final years of super contributions, ensure you’re within all the limits, and set yourself up for a comfortable retirement.
Age 60 and above: Last chance contributions and making the most of super
Hitting age 60 is a milestone in superannuation – your super can now be accessed tax-free (when taken as a lump sum or pension, provided you’ve met a condition of release like retirement). Many people retire in their early 60s, but plenty also continue working into their 60s and 70s. This age group should focus on maximising contributions while you still can, using special opportunities like downsizer contributions, and preparing for the retirement phase (including the transfer balance cap considerations).
1. Concessional contributions – keep going if you can
There’s no higher concessional cap just because you’re older (those days of higher caps for over-60s are gone – now everyone has the same $30k cap). So if you’re still working in your 60s or early 70s, you can continue to contribute $30k per year pre-tax. The tax benefits remain the same (15% contributions tax vs potentially much higher marginal tax if taken as income). Notably, there is no age limit on employer SG contributions now – employers must pay super guarantee even for older workers (the previous cut-off age of 70 was removed). So, if you choose to work at 68, 70, or even 75+, your employer still puts 11–12% of your wage into super. Those amounts count towards your concessional cap.
If you’re 67 or older, one rule change to be aware of: you no longer need to meet a work test to make or receive voluntary contributions (this includes salary sacrifice and non-concessional contributions). Prior to 2022, people 67–74 had to work 40 hours in 30 days to contribute, but that’s been abolished for contributions acceptance. However, if you want to claim a tax deduction for a personal contribution at age 67–74, you do need to meet the work test in that year (or qualify for the one-off work test exemption if recently retired with < $300k balance). In plain language: past 67, you can still contribute to super even if retired, but you can’t turn around and claim it as a tax-deductible concessional contribution unless you did at least 40 hours of work in a 30-day period that year. So salary sacrifice is fine (it’s your employer contributing) and non-concessional is fine (no deduction sought), but personal deductible contributions require the work test.
For those still working into their 60s, definitely aim to use your concessional cap annually. If you’re a high-income earner in your 60s, remember Division 293 still applies (> $250k income means 30% contributions tax) – but as noted, it’s still beneficial overall. If you’ve gotten a late start on super and your balance is under $500k, you can also use any carry-forward cap from previous years here. For instance, unused cap from 2019–20 to 2023–24 can be utilised in 2024–25 (last chance for 2019–20’s portion). At 60+, many have reduced incomes or are transitioning to retirement, so the scope to dump huge sums in concessional might be limited by your taxable income. But even if you sell a major asset and have a big tax bill, don’t forget super as a tool to offset that tax via a deductible contribution (just mind the caps and work test if over 67).
Also, keep in mind: after age 65, you have full access to your super even if you haven’t retired (the rules deem you met a condition of release at 65). So one could, for example, withdraw money and re-contribute it (known as a re-contribution strategy) to convert taxable component into tax-free component, up to the non-concessional caps. This is beyond our scope here, but it’s something some 60+ individuals do to reduce future taxes on super if leaving it to adult children. It basically involves making contributions even after you’ve started drawing out. If this might apply, discuss with your HPH adviser.
2. Non-concessional contributions in your 60s and 70s
Just because you’re nearing or in retirement doesn’t mean you can’t add to your super from personal savings. In fact, many people do exactly that – they downsize house, or get an inheritance, or just shift personal investments into super for the better tax environment. As long as you’re under age 75 (technically, 75 inclusive, up to 28 days after the month you turn 75) your fund can accept non-concessional contributions from you. No work test is needed for these. So even if you retire at 62, you could at 63, 64, 65… contribute after-tax money to super (again, ensuring your total super balance is below $1.9m and you stick to the $120k/year or use bring-forward accordingly).
Bring-forward at older ages
If you are 60-74 and haven’t used bring-forward in the last 2 years, you can still trigger it now. You just need to be under 75 for at least one day of the financial year in which you trigger it (and under the Total Super Balance thresholds). For example, someone who is 74 on July 1, 2024 could contribute, say, $300k and trigger a bring-forward covering 3 years. They won’t be able to contribute in the subsequent years because they’ll be over 75 then (funds can’t accept once you’re 75+ beyond the 28-day grace period), but they utilised it to get a large amount in at 74. If you’re in your early 70s and have, for instance, proceeds from an investment sale, this is worth considering as a “last hurrah” contribution.
Total super balance caution
Many in their 60s have accumulated significant super. If your balance is at or above $1.9 million, you are not allowed to make further non-concessional contributions (and even spouse contributions on your behalf would be rejected). So double-check your balance as of last 30 June. If it’s, say, $1.85m, you can still contribute but not the full bring-forward, the limit might be $120k or $240k depending on thresholds. If it’s $1.95m, you’re out of luck for personal after-tax contributions (though downsizer is still okay regardless of balance).
3. Downsizer contributions (if not done yet)
For those 60+, downsizer is often most relevant now (though as noted, eligibility starts at 55). If you’re in your 60s and choose to sell the long-held family home, you definitely want to look at the downsizer contribution. It’s a one-time chance to put a big chunk into super without worrying about the $120k cap. By this age, you likely don’t have to worry about preservation (since once you’re over 60 and retired, you can access any super anyway), but you do care about maximising the money in a tax-free environment. Downsizer contributions have no upper age limit, even if you sell your home at 80, you can do it. So it’s also relevant for those over 75, whereas other contributions would normally be off the table then.
Keep in mind the transfer balance cap: even though you can contribute via downsizer at any balance, if you already have more than $1.9m in super, any extra you add will stay in the accumulation phase (taxed ~15% on earnings). You wouldn’t be able to convert that excess into a tax-free pension due to the cap. For couples, a common move is ensuring each spouse gets as close to the cap as possible. Downsizer can help top-up a lower-balance spouse’s super.
4. The Transfer Balance Cap (TBC) and timing of retirement
The general TBC is $1.9 million currently – that’s the max that can be moved into a tax-free pension account per person (excess stays in accumulation, taxed at 15%). It’s slated to index up to $2.0 million from 1 July 2025. If you’re around the cusp and have the flexibility, there’s a quirky strategy here: deferring the start of your pension until after that increase. For example, if you’re 64 and about to retire with $1.95m in super, starting a pension now (2024–25) would mean you can only move $1.9m to pension and keep $50k in accumulation. But if you wait until after 1 July 2025, the cap goes to $2.0m; you could potentially put your entire $1.95m into a tax-free pension, since it’s under the new cap. This might only be relevant for the fairly wealthy folks, but it’s something to note. Consult your HPH adviser because partial indexing and personal TBC calculations can be complex (if you already used some cap previously, etc.). But generally, higher cap = more money that can be fully tax-free in retirement.
5. Ensure all final contributions are in
As you wind down work, double-check any age limits so you don’t miss out. After age 75, voluntary contributions (both concessional and non-concessional) can no longer be accepted (other than downsizer and mandated employer contributions). So, if you are, say, 74 and have some cash you want in super, do it before you turn 75 (actually, you have until 28 days after the month of 75th birthday to get it in). For spouse contributions, similarly, your spouse must be under 75 for you to contribute to their super and claim the offset. Many people make one last contribution in the year they turn 74, sometimes using bring-forward if eligible, as the final top-up to their super.
And as always with EOFY contributions: try to contribute well ahead of 30 June. Super funds must receive the money by June 30 for it to count this year. If you’re doing an electronic transfer (BPAY, EFT), note it can take a couple of business days to land in your super account. Don’t leave it to June 29. Aim for a week or more before the deadline, especially if it’s a large sum.
Example – later life contributions: Margaret is 72 and recently semi-retired. She works just a few hours a week as a consultant, mainly to keep busy (earning ~$10k/year). She doesn’t need this income, so she decides to contribute it to super as a personal concessional contribution and claim a deduction – her small amount of work satisfies the work test so she can deduct it. This shelters that $10k in super at 15% tax instead of her marginal rate. Additionally, Margaret and her husband sold their home of 30 years to move into a retirement community. Even though they are 72 and 74, they are both eligible to make downsizer contributions. Margaret puts $300k of the house proceeds into her super, and her husband contributes $300k to his. These moves greatly increase their super balances at the point of retirement. Margaret also plans to withdraw a chunk from her super and re-contribute it to her husband’s account (as a non-concessional to him) to even out their balances, since he has more TBC space. They coordinate this before he turns 75. By the time they fully retire, they each start an account-based pension with ~$1.9m, enjoying the maximum tax-free income stream allowed under the cap.
Wrapping up: Key takeaways and action before June 30
No matter your age, the end of the financial year is a prime time to give your super a boost and take advantage of any available incentives:
Know your caps and limits
For 2024–25, remember the $30,000 concessional cap and $120,000 non-concessional cap (with $360k bring-forward). Check your total super balance as of last 30 June; if it’s close to $1.9m, your ability to contribute after-tax may be reduced or nil. If you’re using carry-forward concessional space, calculate what’s available (and note unused 2019–20 amounts expire after this EOFY).
Contribute early
Don’t wait until the last minute. Transfers can lag and a contribution isn’t counted until it hits your super fund’s account. Aim to make contributions by mid-June to be safe. Also fill out any required forms (e.g. notice of intent for deductions, downsizer forms, etc.) in a timely manner.
Use age-appropriate strategies
Under 30, grab those co-contributions and start the habit of salary sacrifice. In your 30s and 40s, push to contribute more as your earnings grow, and make use of spouse contributions and catch-ups. In your 50s, consider more sophisticated moves like TTR pensions, bring-forwards, and downsizer if applicable. In your 60s and beyond, it’s about maximising the last contributions and structuring things optimally for retirement (including considering the TBC and estate planning aspects).
Tax benefits are significant
Super is one of the most tax-effective ways to save for retirement. Every age group can reap benefits, whether it’s getting “free” money from the government as a young low-income earner, or saving nearly half on tax by salary sacrificing at a high income, or avoiding capital gains tax on a business sale by using super contributions. Use these rules to your advantage, within the limits.
Seek advice
The rules can be complex, and what we’ve outlined are general strategies. Before making large contributions or implementing strategies like TTR or small business CGT contributions, it’s wise to consult with your HPH financial adviser or your tax adviser. They can tailor the approach to your personal situation and ensure compliance with all requirements.
—
Finally, give yourself credit for focusing on your super. By actively managing your contributions at EOFY, you’re ensuring you get the maximum boost from the current rules and incentives. Superannuation is a long-term game, and these end-of-year strategies, applied consistently over time, can dramatically improve your financial security in retirement. Here’s to making the most of your super, at every age!