Making extra contributions to your super – over and above any superannuation guarantee (SG) contributions paid by your employer – can be a powerful way to boost your account balance and get more for your retirement.
And there are lots of different ways to contribute. Generally, they fall into two categories: before-tax contributions, and after-tax contributions.
Also called concessional contributions, these are contributions you make from your salary before any income tax has been deducted (although they can also include after-tax contributions that you’re claiming a tax deduction for).
Also called non-concessional contributions, these are contributions you make from your take-home pay – that’s your pay after income tax has been taken out.
Learn about super contributions, retirement, investing and more through interactive modules.
Learn about super contributions, retirement, investing and more through interactive modules.
There are limits on how much you can contribute to your super each financial year – these are called 'contribution caps', and they’re set by the government.
If you go over a cap, it’s likely you’ll end up paying significantly more tax than you might otherwise have paid, so it’s important to take the caps into account if you’re making additional contributions to your super.
There are two caps to be aware of – the concessional (before tax) contribution cap, and the non-concessional (after tax) contribution cap. We’ve included a brief summary below, but you’ll find more detail on the ATO website.
This is a limit applied to before-tax (or concessional) contributions to your super account (these include contributions from your employer, salary sacrifice contributions, and personal deductible contributions).
For the 2024-25 financial year, you can make up to $30,000 in concessional contributions to your super, and these will be taxed at 15% (or more if you earn more than $250,000 a year). If you have more than one super account, this total is across all of your accounts combined.
If you go over this amount, any excess contributions will be included in your assessable income, and they’ll generally be taxed at your marginal tax rate (a 15% tax offset will apply). But first, the ATO will let you know if you’ve gone over the cap and explain the options available to you.
Visit the ATO website to find out more about concessional contributions cap, how it’s applied, and what you can do if you go over the cap.
This is a limit applied to after-tax (or non-concessional) contributions to your super account (these include personal after-tax contributions and spouse contributions).
For the 2024-25 financial year, you can generally make up to $120,000 in non-concessional contributions to your super. If you have more than one super account, this total is across all of your accounts combined. If eligible, the ‘bring forward’ provisions allow you to contribute up to $360,000 over three years.
Note that your total super balance needs to be less than $1.9 million (for the 2024-25 financial year) to qualify for the cap – if it’s over that amount, the cap is effectively zero, and any non-concessional contributions you make will be considered to be excess contributions.
If you go over this amount, additional tax of up to 47% may apply to these contributions. But first the ATO will let you know if you’ve gone over the cap and will provide options available to you.
Visit the ATO website to find out more about non-concessional contributions cap, how it’s applied, and what you can do if you go over the cap.
You can see if your contributions are getting close to the capped amount by logging into your MyGov account. Head to my.gov.au and choose the ATO services tab.
If you go over a cap, the ATO will let you know and will explain your options.
There are other ways to contribute to your super aside from the more common avenues outlined above. Select these super strategies to find out more:
Adding more to your super can be a powerful way to build your savings over time and the type of retirement lifestyle you’ve been dreaming of. Our qualified financial planners can help you determine which type of contribution strategy might be right for you.
If you’ve got any questions about your Equip Super account and how we manage your money, our team is ready to help.
