For most Australians, superannuation is the key to a comfortable retirement. Your super fund doesn’t just hold money; it grows it over decades with the help of investments, tax concessions, and compounding returns. Yet, many people simply rely on the minimum employer contributions and miss out on opportunities to grow their super faster.
This blog explains, in detail, how you can boost your superannuation account, with practical strategies, step-by-step calculations, and examples. By the end, you’ll understand not only the options available but also the financial impact each one can have.
Understanding How Super Works
Before we look at strategies, let’s recap the basics:
- Super Guarantee (SG): Your employer must pay a minimum of 12% of your ordinary earnings into super (as of 2025).
- Compounding returns: Money in super is invested. Over decades, growth builds upon growth, making time your most powerful ally.
- Tax concessions: Contributions and earnings in super are generally taxed at a lower rate than normal income, making it tax-effective.
👉 Example: If you earn $80,000/year, your employer must contribute $9,600/year (12%). Left untouched, this alone could grow to more than $790,000 in 30 years at a 6% return rate. But with a few smart steps, you can do much better.
Check Employer Contributions
Your first step is to make sure you’re actually receiving what you’re entitled to.
- Employers must pay SG at least four times a year.
- Check your payslips and log in to myGov to ensure contributions are hitting your account.
- If your employer underpays, that’s money lost forever unless you chase it up.
👉 Example: On a $70,000 salary, SG is $8,400/year. If an employer only pays 10% instead of 12%, you miss out on $1,400/year. Over 25 years at 6% growth, that lost $1,400/year equals nearly $81,000 less at retirement.
How You Can Boost Your Superannuation Account
Boost With Salary Sacrifice (Concessional Contributions)
Salary sacrifice means asking your employer to put part of your pre-tax salary into super. These are called concessional contributions.
- Taxed at 15% inside super (instead of your higher income tax rate).
- Annual concessional contributions cap: $30,000 (includes employer + salary sacrifice).
- If your balance is under $500,000, you may use unused caps from previous years (carry-forward rule).
👉 Example:
- Mia earns $90,000/year.
- Employer contributes $10,800 (12%).
- She salary sacrifices $10,000.
- Total concessional = $20,800 (well under the $30,000 cap).
- Without salary sacrifice, she would pay up to 32.5% tax on that $10,000 = $3,250.
- With salary sacrifice, she pays only 15% = $1,500.
- She saves $1,750 tax while boosting super by $10,000.
Over 20 years, that extra $10,000/year invested at 6% grows to $367,000 more in her retirement fund.
Make After-Tax (Non-Concessional) Contributions
These are contributions you make from your take-home income after paying tax.
- Annual cap: $120,000.
- If you’re under 75, you may bring forward up to 3 years of contributions at once ($360,000).
- Useful if you receive a bonus, inheritance, or savings you want to lock into super.
👉 Example:
John invests $20,000 after-tax into his super at age 40.
At 6% annual growth for 25 years, that lump sum becomes:
$20,000 × (1.06^25) ≈ $85,700 by age 65.
That’s more than four times the original amount, thanks to compounding.
Use Government Co-Contributions
If you earn less than a certain amount and make an after-tax contribution, the government may add to it.
- Maximum co-contribution: $500 (if you contribute $1,000 and meet eligibility).
- Phases out as your income rises above $45,000 and cuts off around $60,000.
👉 Example:
Sophie earns $38,000 and contributes $1,000 after-tax.
She receives a $500 co-contribution from the government.
That’s an instant 50% boost. Over 20 years at 6% growth, the combined $1,500 becomes $4,800.
Claim a Tax Deduction on Contributions
You may be able to claim a deduction for personal contributions (turning them into concessional contributions).
- Must submit a Notice of Intent form to your fund.
- Contribution will then be taxed at 15% inside super.
👉 Example:
Emily earns $80,000. She contributes $5,000 from her savings to super and claims a deduction.
- Normally, she’d pay 32.5% tax = $1,625.
- Inside super, only 15% = $750.
- She saves $875 tax while boosting her super.
Take Advantage of Spouse Contributions
If your partner earns low or no income, contributing to their super can help you both.
- Contribute up to $3,000 into your spouse’s super.
- You may get a tax offset of up to $540.
👉 Example:
Alex earns $100,000, and his wife earns $25,000.
He contributes $3,000 to her super.
Alex gets a $540 tax offset, and his wife’s retirement savings grow faster.
Downsizer Contributions
If you’re 55 or older and sell your family home (owned for at least 10 years), you may put up to $300,000 each ($600,000 per couple) into super.
👉 Example:
Peter and Linda, both 60, sell their home and downsize. They each contribute $250,000 into super = $500,000 total.
This lump sum grows tax-effectively, adding a huge boost to their retirement fund.
Consolidate Your Super
Many Australians have multiple super accounts from different jobs. Each charges fees and insurance.
- Consolidating saves on fees.
- It’s easier to track and manage.
👉 Example:
If you have two accounts charging $500/year fees each, that’s $1,000/year. Consolidating saves $500/year. Over 20 years at 6% growth, that $500 saved grows to nearly $18,000.
Choose the Right Investment Option
Your fund usually offers investment choices:
- Growth (higher risk, higher return) – suited to younger members.
- Balanced (medium risk/return) – suits mid-career.
- Conservative (lower risk, lower return) – suits those close to retirement.
👉 Example:
If you invest $100,000 in a conservative option earning 3% per year for 20 years, you end up with $180,600.
If you invest the same in a growth option averaging 7%, you end up with $386,000.
That’s a difference of $205,000, simply by choosing a different investment strategy.
Also Read: 10 Reasons Why Super Coverage Should Not Be Taken for Granted
Real Example: Small Extra Contributions, Big Results
Let’s see how even modest contributions add up.
- Scenario A: Rachel earns $70,000, only SG (12%) = $8,400/year.
- Scenario B: Rachel adds just $100 extra per month ($1,200/year).
Over 30 years at 6% growth:
- Scenario A: $8,400 × factor ≈ $686,000
- Scenario B: $9,600 × factor ≈ $785,000
👉 That extra $100/month grows into nearly $99,000 more at retirement.
Things to Watch Out For
While boosting your super is smart, be mindful of:
- Contribution caps: Avoid excess contributions tax.
- Preservation rules: Super is locked until retirement age (usually 60+).
- Investment risk: Growth options fluctuate; choose according to your age and risk profile.
- Fees and insurance: High fees eat into returns, and unnecessary insurance drains your balance.
- Changing laws: Government updates rules often—stay informed.
Step-by-Step Plan to Boost Your Super
- Check employer contributions on myGov.
- Consolidate accounts to avoid duplicate fees.
- Set a salary sacrifice amount within the concessional cap.
- Consider after-tax contributions if you have spare savings.
- See if you’re eligible for co-contributions or spouse contributions.
- Review your investment option – match it with your stage of life.
- Automate contributions to make saving effortless.
- Revisit yearly to adjust strategy.
Conclusion
Boosting your superannuation isn’t just for high-income earners — small, smart steps can make a massive difference over time. From salary sacrifice and government incentives to spouse and downsizer contributions, the options are many.
The earlier you start, the more compounding works in your favour. Even an extra $50 or $100 a month can turn into tens of thousands by retirement.
Your super is your future income. Take control today, make a plan, and let your money grow smarter. Your retired self will thank you.
