With the end of financial year fast approaching, now is a good time to consider how you can use superannuation to maximise your tax benefits.

While certain contributions may be able to reduce your taxable income or see you pay less on investment earnings, there are a range of considerations. These include how much money you have in your super, whether you’re still in the accumulation phase and your age.

Contributions that could create tax benefits

Tax-deductible super contributions

You may be eligible to claim a tax deduction on after-tax super contributions you’ve made, or make, before 30 June this year.

To claim a deduction, you can notify your fund via a ‘notice of intent’ form. Your fund must lodge and acknowledge this before you file a tax return for the year you made the contributions.

Making additional contributions can be advantageous if you've received extra income, which would otherwise be taxed as personal income. This also applies to the sale of any assets where the proceeds are subject to capital gains tax.

Government co-contributions

If you’re a low to middle-income earner and have made (or decide to make) an after-tax super contribution of $1,000 which you don’t claim a tax deduction for, you might be eligible for a government co-contribution of up to $500.

If your total income is equal to or less than $42,016 this financial year, you’ll be eligible to receive the maximum co-contribution of $500. If your income is between $42,016 and $57,016, your entitlement will reduce progressively as your income rises.

Spouse contributions

If you’re earning more than your partner, spouse contributions are another option to consider.

Eligibility for the maximum $540 offset requires a minimum contribution of $3,000 and your partner’s annual income to be less than $37,000. A partial offset is also available if annual income is less than $40,000.

Salary sacrifice contributions

Salary sacrifice contributions are also generally taxed at 15% (or 30% if total income exceeds $250,000), which can be less than personal income tax.

If you’re in a position to set up a salary sacrifice arrangement, you may want to do this before the new financial year begins, so talk to your employer to document the arrangement.

Important things to consider
  • To claim a deduction or other government concessions, contributions must be received by your fund before the financial year ends.
  • Limits apply on contribution amounts, and additional tax and penalties may be incurred if you exceed contribution caps. Read more about super contribution types, limits and benefits here.
  • The government sets general rules around when you can access your super, which typically won’t be until you reach your preservation age and meet a condition of release, such as retirement.
  • The eligible age for downsizer contributions has been lowered from 60 to 55 years, enabling more Australians to contribute up to $300,000 from the sale proceeds of a home into super.
  • Superannuation guarantee payments are increasing to 11% from 1 July 2023.
Where to go for assistance

Super rules can be complex, so for more information regarding what caps and limits apply, check out your myGov account, or speak to your adviser.

Before making extra contributions, make sure you understand and are comfortable with any potential risk.

What's next?

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What you need to know

Any advice and information is provided by AWM Services Pty Ltd ABN 15 139 353 496, AFSL No. 366121 (AWM Services) and is general in nature. It hasn’t taken your financial or personal circumstances into account. Taxation issues are complex. You should seek professional advice before deciding to act on any information in this article.

It’s important to consider your particular circumstances and read the relevant product disclosure statement, or terms and conditions, available from AMP at amp.com.au, or by calling 131 267, before deciding what’s right for you.

You can read our Financial Services Guide online for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. You can also ask us for a hardcopy. All information on this website is subject to change without notice. AWM Services is part of the AMP group.