What are extra super contributions?
Putting extra money into your super while you’re working can help set you up for a comfortable retirement. And you could save yourself some tax along the way. It’s easy to get started and you don’t need a lot now, to make a big difference later.
Why make extra contributions?
By making extra contributions, you can take advantage of compounding returns. Compounding happens when the money you earn on an investment is reinvested, so you gain returns on both your original amount and any returns you’ve already earned.
Learn about the benefits of compound interest
Types of super contributions
There are a number of ways to boost your super and each have their own benefits. Some of these are dependent on your age, income and super balance. Learn more about them here:
Personal contributions
After-tax contributions you make from your take home pay or other savings you have. You may even benefit from a Government co-contribution.
Salary sacrifice
You ask your employer to redirect some of your before-tax salary into your super account.
Spouse contributions
Help your spouse grow their super balance. You may be eligible for a tax offset.
Downsizer contributions
You may be able to contribute up to $300,000 from the sale of your home to your super, which is exempt from contribution caps.
Before-tax and after-tax contributions
What's the difference between these types of contributions?
Before-tax contributions
These are also called concessional contributions.
They are contributions you can make from your salary before it's taxed.
After-tax contributions
These are generally called non-concessional contributions.
They are contributions made from money that's already been taxed.
However, you may want to claim a tax deduction on your after-tax contributions which will count towards your concessional contribution cap.
Learn more with the How to claim a tax deduction on personal super contributions factsheet (PDF).
Contribution caps
Whether it’s a large bonus from work or an inheritance, there may be some years where you can afford to put a bit more into your super than other years. You can make contributions to your super from either your before-tax or after-tax income, but there are caps on how much you can contribute. It’s important you don’t go over these caps, otherwise you could end up paying extra tax.
| Before-tax (concessional contributions) | After-tax (non-concessional contributions) |
|---|---|
| $30,000* per financial year | $120,000 per financial year |
*This includes the compulsory contributions made by your employer
Ways to contribute more than your annual caps
If you're eligible, you can combine caps from multiple years if you want to make a larger contribution and avoid paying extra tax.
Before-tax (concessional) contributions: Carry forward rule
If your contributions (including employer contributions) are less than the before-tax cap for that year, the unused portion can be carried forward to future years. The current cap is $30,000 per financial year. Between 1 July 2020 and 30 June 2021, it was $25,000. Between 1 July 2021 and 30 June 2024 it was $27,500. From 1 July 2024 to 30 June 2025 it was $30,000.
Unused cap amounts expire after five years, and your total super balance will need to be less than $500,000 (as at the last 30 June) to be eligible to access any unused cap.
To find how much you can carry forward:
- Log in to your ATO account
- Click Super in the top menu
- Click Information
- Click Carry-forward concessional contributions
- Scroll down to Unused concessional contributions available to carry forward.
After-tax (non-concessional) contributions: Bring-forward arrangements
If you contribute more than $120,000 in one year, you may be able to access future year caps. This is known as the bring-forward arrangement and means you can make extra contributions without having to pay extra tax.
If you’re under age 75, you may be able to make non-concessional contributions of up to three times the annual cap in that financial year. Your total super balance will impact how much you can bring forward.
Example: Using the bring-forward arrangement
- Mei has a super balance of $400,000 and recently received a $250,000 inheritance
- Using the bring-forward arrangement, she could contribute the entire $250,000 to super in one contribution
- To ensure she doesn’t pay extra tax, she needs to ensure she doesn’t contribute more than $360,000 in total over a period of three financial years.*
* Example is for illustrative purposes only.
Find out more
Thinking of making an extra contribution to your super but have questions? Here's how you can find out more.
Try the calculator
Use the contributions calculator to find out what extra super contributions may look like for you.
Find a webinar
Join an online education session to find out more about super contributions.
Get advice
Our Advice team is here to help you work through your options and answer your questions about contributions.