Smart Super Strategies for this EOFY

Smart Super Strategies

Smart Super Strategies

  • Ways to help boost your retirement savings while potentially saving on tax.  
  • Here are five smart super strategies to consider before the end of the financial year. 
  • In most cases you should act before MID-June to ensure payments are processed before 30 June to your super account. 

1. Add to your super – and claim a tax deduction

If you contribute some of your after-tax income or savings into super, you may be eligible to claim a tax deduction.  This means you’ll reduce your taxable income for this financial year – and potentially pay less tax.  And at the same time, you’ll be boosting your super balance.

How it works

The contribution tax is generally up to 15% on entry to the fund (or up to 30% if you earn $250,000 or more).  Depending on your circumstances, this is potentially a lower rate than your marginal tax rate, which could be up to 47% (including the Medicare Levy) – which could save you up to 32%.   Even at the lowest margin rate of 19% (plus 2% Medicare levy) you are savings at least 6%.    

Once you’ve made the contribution to your super, you need to send a valid ‘Notice of Intent’ to your super fund, and receive an acknowledgement from them, before you complete your tax return, start a pension, or withdraw or rollover the money.

Keep in mind that personal deductible contributions count towards the concessional contribution cap, which is $27,500 for the 2021/22 financial year.  However, you may be able to contribute more than that without penalty if you didn’t use the whole $25,000 cap in 2018/19 or 2019/20 or $2020/21 and are eligible to make ‘catch-up’ contributions.

Concessional contributions also include all employer contributions, including Superannuation Guarantee and salary sacrifice – speak to me to find out more, as any breach of limits may cause excess penalty taxes.

2. Get more from your salary or a bonus

If you’re an employee, you may be able to arrange for your employer to direct some of your pre-tax salary or a bonus into your super as a ‘salary sacrifice’ contribution.  Again, you’ll potentially pay less tax on this money than if you received it as take-home pay – generally 15% for those earning under $250,000 pa, compared with up to 47% (including Medicare Levy).

How it works

Ask your employer if they offer salary sacrifice.  If they do, it can be a great way to help grow your super tax-effectively because the contributions are made from your pre-tax pay – before you get a chance to spend it on other things.   Remember salary sacrifice contributions count towards your concessional contribution cap, along with any superannuation guarantee contributions from your employer and personal deductible contributions.  Also, you may be able to make catch up (extra) contributions if your concessional contributions were less than $25,000 in the last two financial years.

3.   Convert your savings into super savings

Another way to invest more in your super is with some of your after-tax income or savings, by making a personal non-concessional contribution.  Although these contributions don’t reduce your taxable income for the year, you can still benefit from the low tax rate of up to 15% that’s paid in super on investment earnings.  This tax rate may be lower than what you’d pay if you held the money in other investments outside super.  Also, there is no tax on these contributions to the super account.  

How it works

Before you consider this strategy, make sure you’ll stay under the non-concessional contribution cap, which in 2021/22 is $110,000 – or up to $330,000 if you meet certain conditions.  That’s because after-tax contributions count as non-concessional contributions – and penalties apply if you exceed the cap.  Also, to use this strategy in 2020/21, your total super balance must have been under $1.6 million on 30 June 2020.

Remember, once you’ve put any money into your super fund, you won’t be able to access it until you reach preservation age or meet other ‘conditions of release’.  For more information, contact me or visit the ATO website at

4.   Get a super top-up from the Government

If you earn less than $56,112 in the 2021/22 financial year, and at least 10% is from your job or a business, you may want to consider making an after-tax super contribution.  If you do, the Government may make a ‘co-contribution’ of up to $500 (max) into your super account.

How it works

The maximum co-contribution of $500 is available if you contribute $1,000 and earn $41,112 pa or less.  You may receive a lower amount if you contribute less than $1,000 and/or earn between $41,112 and $56,112 pa (the $500 phases-out by 50c for every $1 of earnings over $41,112 pa).  Be aware that earnings include assessable income, reportable fringe benefits and reportable employer super contributions.  Other conditions also apply – and I can run you through them.

5.   Boost your spouse’s super and reduce your tax

If your spouse is not working or earns a low income, you may want to consider making an after-tax contribution into their super account.  This strategy could potentially benefit you both: your spouse’s super account gets a boost and you may qualify for a tax offset of up to $540.

How it works

You may be able to get the full $540 offset if you contribute $3,000 and your spouse earns $37,000 pa or less (including their assessable income, reportable fringe benefits and reportable employer super contributions).  A lower tax-offset may be available if you contribute less than $3,000, or your spouse earns between $37,000 and $40,000 pa.

Need advice?

You’ll need to meet certain eligibility conditions before benefitting from any of these strategies.  If you’re thinking about investing more in super before 30 June, talk to us.  We can help you decide which strategies are appropriate for you.

Until next time, 

Regards Rodney. 


Rodney Johnstone CFP BBus, DipFP, GradDipAppFin 

Authorised Representative of Count Financial Limited

Financial Adviser,  FPW Financial Advice Pty Ltd 

General Advice Disclaimer


If you would like to get in touch to have a chat about any of the services that FPW Financial Advice provides, click here