Super tax hacks – keep more of your money

Super isn’t just a retirement vehicle, it’s one of the most tax-effective structures in Australia to grow wealth. There are more hacks than most people realise. Here’s how to use them clearly, cleanly, and in a way that fits your goals. 

Quick note: rules and caps change, and some strategies interact. Sense-check with a professional before you pull any big levers.  

Ready to save some tax? Here’s five options to consider. Let’s jump in.  

1. Concessional Contributions 

Before-tax (concessional) contributions include your employer Super Guarantee (SG), salary sacrifice, and personal contributions you claim as a tax deduction. Inside super, these are generally taxed at 15% instead of your marginal tax rate; this can save serious dollars over time.  

The current concessional cap is $30,000 per financial year for all individuals. You can also carry forward any unused concessional cap amounts for up to five years if your total super balance (TSB) was under $500,000 on the previous 30 June.  

Strategy 

If you’re on a higher income, consider salary sacrifice to reduce taxable income while boosting super. Heads-up for high earners: if your income + concessional contributions exceed $250,000, Division 293 adds an extra 15% contributions tax (still often attractive versus top marginal rates). 

Firstly, confirm how much SG your employer is paying and what’s already hit your fund this financial year. 

Then check your available carry-forward room in myGov → ATO online services (Super → Information → Carry-forward concessional contributions).  

2. Non-Concessional Contributions 

After-tax (non-concessional) contributions aren’t taxed on the way in (you’ve already paid income tax).  

The current* annual non-concessional cap is $120,000, and the bring-forward rule lets eligible people contribute up to $360,000 in one go by bringing forward two future years. Eligibility depends on your age and, crucially, your total super balance at the prior 30 June. If your TSB is at or above the general Transfer Balance Cap (TB Cap) – currently $2.0 million – your non-concessional cap may be reduced or zero.  

Strategy 

If you’ve accumulated cash or investments in your own name, consider moving wealth into super’s lower-tax environment (earnings generally taxed at <15% in accumulation), within the caps and your TSB constraints.  

3. Plan your retirement phase 

Once you start an account-based pension in retirement phase and you’re over 60, withdrawals are generally tax-free and earnings on pension assets are tax-free inside super  - up to the TB Cap, and not on TTR accounts. 

TTR (Transition to Retirement) – ages ~60–64 

If you reached preservation age (currently 60 for most) and are still working, a Transition to Retirement income stream (TTR) lets you top up part-time wages with your super as you wind down gradually. While withdrawals after 60 are usually tax-free, earnings on a TTR stay taxed at up to 15% until you meet a full condition of release or turn 65. There’s also a 10% maximum drawdown per year on TTR accounts.  

Strategy 

Switch to pension phase (within your TB Cap) once eligible to turn on tax-free earnings and payments. 

Use a TTR as a dimmer switch (not an on/off lever) to reduce work hours without spiking tax, then convert to a full retirement-phase pension when you meet the release condition (at age 65).  

4. Time your retirement 

Unused annual/long-service leave is typically paid out as a taxable lump sum when you finish work. Using leave before you exit can reduce taxable income in the year of retirement while still keeping SG contributions flowing (whereas you wouldn’t usually get paid super on top of lump-sum termination payments).  

The time of year matters here. Crossing 30 June can shift income between financial years. If your income will be lower next year, timing your official retirement after 30 June can reduce the tax hit on lump sums compared to finalising just before. A superannuation coach can help you model a few scenarios to be sure. 

Strategy 

If you’re close to the line, compare: 

• Using leave then retire (keeps SG going, smooths income), vs 

• Retiring now and taking lump sums (simpler admin, but may mean higher tax in that year). 

5. Spouse contributions & splitting 

No wedding ring needed for this one – de facto partners also count for the Spouse contribution tax offset, provided you’re living together. If your partner earns below $37,000, you may receive a tax offset up to $540 for contributing to their super (or a partial offset if they earn under $40,000). Check current income tests and your partner’s TSB/caps before contributing. 

Contribution splitting 

You can generally split up to 85% of your concessional contributions to your spouse’s account (subject to fund rules). Splitting doesn’t create extra cap space, it just moves contributions between you, which can: 

• Balance super between partners 

• Help both of you stay under personal TB Caps 

• Potentially improve Age Pension outcomes or access if one partner is older.  

Strategy 

Use spouse strategies to smooth balances, keep more in the tax-free retirement bucket later (within the TBC), and create flexibility if your retirement ages differ. 

Power up your tax 

Think of this as your wealth-building cheat sheet. You don’t have to be a tax geek, you’re just re-routing dollars into a smarter lane so future you gets more options.  

Here’s your tax-hacking to-do list. 

• Reduce your pay to grow your nest egg. Concessional contributions (salary sacrifice or deductible personal) are usually taxed at 15% inside super, which for many beats your marginal tax rate. Set a $ or % you won’t miss and let it run. 
   

• Use the rollover room you already have. If your total super balance is under $500k, you may carry forward up to five years of unused concessional caps. Perfect for bonus season or a profitable year — without breaking your monthly budget. 
   

• Move money from high-tax world to low-tax world. Non-concessional (after-tax) contributions shift cash outside super to inside super, where tax on earnings is typically lower. Got a windfall? The bring-forward rule lets eligible folks drop up to three years’ worth in one go. 
   

• Flip on the tax-free switch (when you can). Once eligible, starting a retirement-phase pension means tax-free withdrawals and tax-free earnings (within your cap). Not quite there? A TTR can top up part-time work from around 60 as you dial down the daily grind like a dimmer switch. 
   

• Time your exit like the pro you are. Using leave while still employed can smooth income (and keep SG flowing) versus taking a big lump-sum payout. If you retire close to 30 June, think about which side of the date leaves you better off. 
   

• Play as a team. Spouse contribution offset and contribution splitting can balance super and stretch your future tax-free buckets. Splitting can help both of you stay under personal caps and unlock access at different times. 

• Bonus points (impact, not just income). With Future Super, every extra dollar isn’t only tax-smart – it's a vote for the future you want to see.  
   

And remember that the planet will benefit, too. Directing more of your savings into Future Super doesn’t just work your tax harder – it can work your impact harder too. The power of your money is invested for a future free from climate change and inequality. 

FAQs: Using super to minimise tax

What are the current super contribution caps? 

Currently* $30,000 concessional (before-tax) and $120,000 non-concessional (after-tax); eligible members may use the bring-forward rule to contribute up to $360,000 at once.  

Can I carry forward unused concessional caps? 

Yes – up to five years of unused cap if your TSB < $500,000 at the previous 30 June. Your available amount shows in myGov → ATO online services. 

What if I’m a high earner? 

If your income + concessional contributions > $250,000, Division 293 may apply an extra 15% contributions tax to some or all concessional contributions.  

What’s the Transfer Balance Cap now? 

The general TB Cap increased to $2.0 million from 1 July 2025. Your personal TB Cap may differ depending on when you first started a retirement-phase pension.  

Are TTR earnings tax-free? 

Not until you meet a full condition of release or turn 65. TTR earnings are typically taxed at up to 15%, and drawdowns are capped at 10% per year, while earnings and payments are generally tax-free (subject to your TB Cap).  

Is SG payable on my unused leave payout? 

Generally no – lump-sum termination payments (like unused annual leave/long service leave payouts) are not ordinary time earnings, so SG usually isn’t payable. 

*All figures from 2025-26 financial year. Please visit ATO Caps, limits and tax on super contributions for the latest contribution caps and tax rates.  

All information is general in nature and does not take account of your personal objectives, financial situation or needs. Consider speaking with a Future Super Coach or a financial adviser.  

This material has been prepared for informational purposes only. Any taxation, legal and other matters, including any interpretation of existing laws, referred to in this material is not intended to represent or be a substitute for specific taxation or legal advice and should not be relied on as such. You should obtain professional advice from a registered tax agent or legal practitioner. Existing laws may change from time to time. Information is current as of November 2025.