Australian superannuation is a mandatory retirement savings system that aims to provide financial security for Australians during their golden years. The purpose of superannuation is to encourage individuals to save for their retirement, as it is estimated that people will need to support themselves for up to 30 years in retirement.

By requiring employers to contribute a portion of an employee’s salary into a superannuation fund, the Australian government helps ensure that citizens are able to enjoy their retirement with a comfortable standard of living. The government offers various tax benefits and incentives to encourage individuals to contribute to their superannuation. One of the major advantages of superannuation is its flexibility, as individuals can choose the type of investment option and fund that best suits their needs and risk tolerance.

Super Contributions:

Superannuation environment provides favorable tax benefits that can assist clients in maximizing their savings and preparing for their retirement. There are various strategies available to help individuals accumulate substantial retirement savings and make the most of tax-efficient savings opportunities.

Concessional Contributions:

Concessional contributions are those contributions made before tax. Some common examples are :

    • Super Guarantee Contributions
    • Personal Deductible contributions
    • Salary Sacrifice contributions
    • Employer paid administration and insurance costs

Concessional contributions cap for 2022/2023 FY – $27,500

Non-concessional contributions (NCC):

These are after tax contributions made into a super fund.

    • Personal Contributions not claimed any tax deductions
    • Overseas pension transfer
    • Excess Concessional Contributions
    • Spouse Contributions

Non Concessional contributions cap for 2022/2023 FY – $110,000 . Subjected to satisfying certain conditions you may be able to bring forward total 3 years of NCCs up to $330,000

Want to find out superannuation contribution strategies, tax savings, maximize your NCCs, contributions eligibility criteria, work test, bring forward rules, exemptions, treatment of excess contributions ? Please visit us – or email:

Spouse Contributions:

You may be able to contribute on behalf of your spouse who is unemployed, works part time or a low income earner. By doing so you may be eligible to tax offset (subject to meeting eligibility criteria) by making a contribution on behalf of your spouse (married or de facto).

Downsize Contributions

Individuals who are aged 55 and over (from 1 Jan 2023), subjected to meeting certain criteria , may be able to make $300,000 super contributions from sale proceeds of their home. Downsizer contributions do not count towards any contribution caps and will not affect your total superannuation balance until it is re-calculated at the end of the financial year.

However, downsizer contributions will count towards your transfer balance cap. This cap applies when you move your super savings into retirement phase and will be considered for determining eligibility for the age pension.

Transfer Balance Cap

From 1 July 2017, the total amount of super you can transfer into a tax-free retirement account is capped. This is called the transfer balance cap

General Transfer Balance Cap : $1.7M Lifetime limit

Mo Money … Mo Problems – Division 293 Tax

An additional 15% tax on some concessional contributions made by high income earners – Income threshold $250,000. If you wish to learn more on Div 293 tax, types of income assessed, Low Tax Contributions (LTC), Tax treatment of LTCs, special rules and more specific strategies, please contact

Spouse Contribution Splitting

Spouse Contribution splitting can be done for superannuation fund members who want to split their super contributions. When you split your contributions, you transfer or roll over a portion of the contributions you recently made to your super account, to your spouse’s super account.

Small Business CGT Concession Contributions

Subjected to eligibility criteria, you may be able to contribute to your super fund from the small business 15 year concessions without affecting your non-concessional contributions limits. Current CGT concessions cap is $1,650,000 (22/23 FY)

Government Co Contributions

For eligible people Super co-contributions can boost their retirement savings.

If you’re a low or middle-income earner and make personal (after-tax) contributions to your super fund, the government may also make a contribution up to a maximum amount of $500.

Low Income Super tax offset

The low income super tax offset (LISTO) is a government superannuation payment of up to $500 to help low-income earners save for retirement. If you earn $37,000 or less a year, you may be eligible to receive a LISTO payment. This is usually paid directly into your super fund.

First Home super Saver Scheme

The first home super saver (FHSS) scheme allows people to save money for their first home inside their super fund. You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your eligible contributions to be released under the FHSS scheme, up to a total of $50,000 contributions across all years. You will also receive an amount of earnings that relate to those contributions.

Claiming tax deductions – Personal Super contributions

You may be able to claim a tax deduction for personal super contributions that you made to your super fund from your after-tax income – for example, from your bank account directly to your super fund. You must give your super fund a Notice of intent to claim (NAT 71121) and receive an acknowledgment from your fund. NOTE : There are other eligibility criteria you must meet.

Finally :

“When it comes to superannuation, start planning early “

For further info, please email :

To learn about our company, services, process, fees and contact details please visit our website :

Written by Shan Muthukuda – Galleon Capital & Advisory Pty Ltd

Source: Information on this article was sourced from

General Advice Warning: The information in this document has been prepared for general information purposes only and does not take into account your personal objectives, financial situation or needs. It is not intended to provide commercial, financial, investment, accounting, tax or legal advice. You should, before you make any decision regarding any information, strategies, or products mentioned in this document] consult a professional financial advisor to consider whether it is suitable and appropriate for you and your personal needs and circumstances. Before making a decision to acquire a financial product, you should obtain and read the Product Disclosure Statement (PDS) relating to that product, together with the Target Market Determination (TMD)”

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