Super is one of the most under-optimised assets in Australia
Each year, we see business owners and professionals miss opportunities simply because they didn’t know what was available or left decisions too late. Used well, super can reduce tax today while building long-term wealth. The biggest gains come from planning early — not rushing at year-end.
| Super rewards planning. It punishes guesswork. |
Strategy 1: Maximise concessional contributions
Concessional contributions are made using pre-tax money and are subject to an annual cap. They include employer Super Guarantee contributions, salary sacrifice contributions, and personal contributions claimed as a tax deduction.
Most Australians will not fully use the concessional cap through employer contributions alone. Any unused amount is an opportunity to reduce taxable income and build super simultaneously.
How to use it
- Salary sacrifice a regular amount from your pay, or
- Make a lump-sum personal contribution and claim the deduction in your tax return
Important admin step
To claim a personal concessional contribution as a tax deduction, your super fund must receive the contribution before 30 June. You must also lodge a Notice of Intent to Claim with the fund and receive acknowledgement before lodging your tax return. Miss this step and you lose the deduction.
For business owners, concessional contributions are often part of a broader business tax planning strategy.
Strategy 2: Use catch-up contributions if you’ve under-contributed before
If your total super balance is below the relevant threshold, you may be able to access unused concessional contribution caps from previous financial years. This allows you to contribute above the standard annual cap in a single year.
Unused amounts can be checked via MyGov. You are not penalised for past years when super wasn’t a priority — you can catch up when circumstances allow.
Strategy 3: Make non-concessional contributions when cash is available
Non-concessional contributions are made using after-tax money. If your total super balance is below the applicable limit, you can contribute up to an annual cap. There is no tax deduction, but funds move into a low-tax, long-term environment.
This can suit redundancy payments, asset sale proceeds, inheritances, or surplus cash from a strong business year.
Strategy 4: Consider larger one-off contribution strategies
Bring-forward contributions
If eligible, you may be able to access multiple years of non-concessional caps at once. This allows a large contribution when timing and liquidity align.
Downsizer contributions
If you meet age and ownership requirements, you may be able to contribute proceeds from selling your home into super. This is a one-off opportunity with strict timing rules and no requirement to purchase a smaller home. With rising property values, this has become an increasingly relevant late-stage planning strategy.
Common super mistakes we see
Leaving super planning until June. Assuming employer contributions are enough. Missing paperwork deadlines. Over-contributing. Making decisions without considering tax and cash flow.
If you’re considering an SMSF as part of your super strategy, read what you need to have in place before setting up a fund first.
Frequently asked questions
What is the difference between concessional and non-concessional contributions?
Concessional contributions are made using pre-tax money and taxed at a lower rate inside super. Non-concessional contributions are made using after-tax money and do not provide a tax deduction.
What are catch-up super contributions?
Catch-up contributions allow eligible individuals to use unused concessional contribution caps from previous financial years, letting you contribute more than the standard annual cap in a single year.
What happens if I contribute too much to super?
If you exceed your contribution caps, you may face additional tax and administrative complexity. Planning and timing your contributions is essential to avoid this.
creditte helps Australian business owners and professionals with personal tax planning and SMSF strategy — including getting contribution strategies right each year.
If this is relevant to your situation, book a discovery call — it is 15 minutes and free.
