CONTRIBUTING TO SUPER

Spouse contributions

Let’s face it. Planning your future is more than planning for yourself. It’s also about your family. You can make super contributions for your spouse if they’re not employed or earn less than $40,000 p.a.

A spouse can be married or de-facto and there are possibly tax incentives available to those who are eligible.

You may even be entitled to a tax offset of up to $540 (maximum) each financial year if:

• You do not claim a tax deduction for the contribution

• At the time the contribution is made, both you and your spouse are Australian residents and live together on a permanent basis

• The sum of the spouse's assessable income (including fringe benefits and super contributions) for the financial year is less than $40,000

• The contribution is made to a complying superannuation fund for the income year
  
  Please note that the maximum $540 offset amount can only be received if the spouse is earning less than $37,000 p.a but if they are earning more than this amount, the tax off-set is progressively reduced until the tax-offset reaches zero for those spouses that are earning more than $40,000 p.a.
  
  Also important to note that you can’t claim this tax offset if:

  • Your spouse has exceeded their non-concessional contributions cap for the financial year
  • Your spouse’s super balance is $2 million (for 2025/26) or more on 30 June of the previous financial year in which the contribution was made

You can view information on ATO spouse contributions here.

Your personal circumstances will determine whether you end up paying less tax so check out the Australian Taxation Office (ATO) website for more information or discuss with your financial adviser.

Employer Super Guarantee contributions

If you are an eligible employee, your employer must pay your super on your behalf by law. These employer contributions are usually referred to as Superannuation Guarantee (SG) contributions.

Generally you’ll be considered an eligible employee if you are:

• At least 18 years old; and
• A full-time, part-time or casual worker.

Here is what you need to know about employer super contributions:

• From 1 July 2025, an SG contribution is 12% of your salary or your 'ordinary time earnings', including your benefits such as award payments, bonuses, commission and allowances.
• They are paid "before tax" and therefore make up part of your concessional contribution cap. Keep this in mind if you’re making additional contributions because there can be benefits and disadvantages with the amount you contribute each year.
• Employers must pay these contributions on your behalf at least four times a year, by the quarterly due dates. It's a good idea to log in to your super once a quarter to make sure you’re receiving your payments from your employer. Missed payments have been known to happen so it pays to keep an eye on it.

Voluntary contributions

You have the choice to top up your superannuation account with money out of your own pocket. This is called making a 'voluntary' or 'personal' contribution.

Salary sacrifice

You can boost your super balance and potentially save on tax by contributing an extra amount of your salary to your super. This is called salary sacrificing. For most people, this will be taxed at a lower rate of 15% and contributes to your concessional contribution cap.

All you need to do is ask your employer to pay some of your gross salary into your super fund—you decide how much. But remember there are contribution caps you need to keep in mind. If you go over these there could be additional tax you will be required to pay.

The maximum rate your super contributions from your employer (SG contributions) are taxed at is 30% (where adjusted taxable income is above $250,000), provided you don’t exceed the 'before tax contribution cap' for the year. That means any Salary Sacrifice contributions you make are deducted from your Taxable Income.

Just remember, superannuation contributions have to remain in a super fund until you meet a condition of release such as reaching 'preservation age' and may be subject to tax at time of exit. The 12% employer contribution may be impacted by your decision to make salary sacrifice contributions. A concessional contribution cap of $30,000 p.a. applies in 25/26 financial year.

Any salary sacrifice amount over the concessional contributions cap will be taxed at your income tax marginal rate. For more information, head to the ATO website. The scenario above is an example only, actual benefits may vary and will depend on individual circumstances.

Government co-contributions

For those who are eligible, the government co-contribution initiative is a great way to build up your super. It’s done by making personal contributions from after-tax money. The income thresholds for the co-contribution are raised annually. Based on the figures that apply for FY 25/26, if you contribute money into super from your after-tax income and earn less than $62,488, you could be entitled to a co-contribution from the government. Whether you are an employee or self-employed, this co-contribution could be as high as $500 ($1,000 of personal contributions and $500 in govt co-contribution). This is an annual opportunity so, providing you meet the criteria, you could receive it each year.

To be eligible you generally need to:

• Make a personal (after-tax) contribution to your superannuation
• Earn less than $62,488
• Earn 10% or more of your income from carrying on a business, eligible employment or both
• Have a total superannuation balance at 30 June of the previous financial year (including any pension balances but excluding any structured settlement amounts) that is less than $2 million for FY25/26.
• Have not exceed your non-concessional contributions cap in the relevant financial year
• Lodge an income tax return for the year you have earned your income
• Ensure your super fund has your tax file number
• Be under 71 years old at the end of the financial year
• You did not hold a temporary visa at any time during the financial year (unless you are a New Zealand citizen or it was a prescribed visa)

If you’re eligible and your income is less than $47,488 for FY 25/26 you could receive $0.50 for every after-tax dollar you contribute to superannuation from the government up to the maximum co-contribution of $500. For every dollar above this threshold, your entitlement decreases, before stopping completely for anyone who earns $62,488 or more.

The co-contribution decreases by 3.33 cents for every dollar you earn over $45,400, reaching zero when you earn over $60,400 for FY 24/25. They are measured from your assessable income plus your fringe benefits.

Note: These income levels are for the 25/26 financial year. The income thresholds are indexed annually.

Keep in mind that contribution annual caps can add up across different super accounts and types of contributions.

If you would like more information on government co-contributions and the eligibility criteria please visit the ATO

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