Super
21st June 2025
Quick Look
Focus: Understand how to maximise your super contributions without breaching the caps.
Key Takeaways :
Introduction
Contributing to superannuation can be one of the most tax-effective ways to build your retirement savings—but it’s not a free-for-all. The Australian Government sets annual contribution caps and breaching them can lead to extra tax and paperwork.
Understanding the difference between concessional and non-concessional contributions—and the rules that apply to each—puts you in a stronger position to grow your super strategically, especially as you near retirement.
Context & Problem
Super contributions are capped to ensure tax benefits are used fairly. The caps reset each financial year, but there are rules that allow you to bring forward future limits or catch up on unused caps—if you qualify.
The problem is many Australians either under-contribute (missing out on tax perks) or accidentally over – contribute (triggering normal personal tax rates). Knowing how the system works now helps you avoid costly mistakes and make the most of available opportunities.
Includes:
Cap: $30,000 per year (ATO, updated 1 July 2024)
Tax treatment: Taxed at 15% going into super (vs your personal marginal rate, which may be higher).
Tactic: Carry Forward Unused Caps
If your total super balance is under $500,000 on 30 June of the previous financial year, you can carry forward any unused contribution amounts for up to 5 years.
Example: If you only used $15,000 last year, you can contribute an extra $15,000 this year—on top of your $30,000.
When it helps:
Non
–
Concessional Contributions –After -Tax Money
Includes:
Cap: $120,000 per year (ATO, updated 1 July 2024)
Tactic: Bring-Forward Rule
If you’re under 75 and meet the total super balance test, you may contribute up to $360,000 for three years in one go.
When it helps:
Optimisation Tips
Case: Pre-Retirement Catch-Up
Amal, aged 58, had a super balance of $420,000 and earned $120,000 annually. Over the previous three years, she only contributed $15,000/year in SG, leaving $37,500 in unused concessional cap.
In2024–25,she sells an investment property and in addition to her employer SG of $13,800,uses $20,000 from the proceeds to make a tax-deductible personal contribution. She also salary sacrifices $3,700. That makes up her total of $37,500—equal to her carried forward concessional cap
Outcome:
Can I use both carry - forward and bring - forward rules at the same time?
Yes — if eligible. They apply to different caps. But you must track contributions carefully to avoid breaching either cap.
What happens if I go over the cap ?
Is there a limit to how much super I can have overall?
Are these caps indexed?
The key is understanding your limits, checking your total super balance, and getting guidance before making large or complex contributions. Done right, these strategies can make a big difference.
Looking to grow your super with help from the government?
Money GPS provides a personalised overview of how co-contributions work, including:
Available online for $55. You can explore the platform for free and get the advice when you’re ready.
Need Full Scope Financial Planning?
If you think you might need a holistic roadmap that leaves nothing out, consider booking a discovery meeting with a fully licensed Financial Planner.
Book a discovery call with Planning IQ today and take the first confident step towards comprehensive wealth management.
Disclosure: General information only. Consider your objectives, financial situation and needs, and seek professional advice before acting.
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Fact References
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