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Now that you’ve done some personal calculations and you know if you have a gap between what you’ll have versus what you’ll need, you have the opportunity to fill that gap. 

If you’re on track to having a nest egg that would support you in retirement and deliver the lifestyle that you want, congratulations and well done! If you’re not, there are a number of several different options available to help you increase your savings, to support you when you stop work. Here’s an overview of what you can do:

Making the most of your super also includes remembering that there are limits to how much you can contribute to your super each year. If you breach these ‘contribution caps’ you may need to pay extra tax. Your total super balance and age may also affect how much more you can contribute.

It’s important to keep a track of your contributions and be aware of the limits to avoid any unexpected tax implications.

There are different kinds of contributions you can consider. It’s important to understand the difference, as this can impact how much tax you pay. Here’s an overview:

Concessional contribution caps

Concessional contributions are contributions made from your before-tax income, including your compulsory super contributions (also known as super guarantee) and salary sacrifice. It also includes any personal contributions using after-tax income (such as funds transferred from your bank account into super) that you’ve claimed a tax-deduction on. For the 2022-23 financial year, the concessional contribution cap is $27,500 per annum. 

Non-concessional contribution caps

Non-concessional contributions are contributions made from your after-tax income and aren’t taxed once received by your super fund. However, if you exceed your non-concessional caps you may need to pay extra tax. Also note, investment earnings in the fund are taxed at 15 per cent. For the 2022-23 financial year, the non-concessional contribution cap is $110,000 per annum. This cap might be higher, if you can use the bring-forward arrangements.

Wrap up

Superannuation can be a complex arena, so it’s important to make sure you’re comfortable in the knowledge that you know which contribution option is best for you. If at any time you’re unsure, it’s good to reach out to your super fund who can provide you with general information. If you want specific information relevant to your particular situation, speak to your financial planner. If you don’t have a financial planner, reach out to the Financial Advice Association Australia who as an independent body, can help put you in contact with one.

Important information

This is general information only and is not intended as financial, medical, health, nutritional or other advice. You should obtain professional advice from a financial adviser, or medical or health practitioner in relation to your own personal circumstances. This information was prepared by Resolution Life Australasia Limited ABN 84 079 300 379, AFSL No. 233671 (Resolution Life). A copy of the Product Disclosure Statement can be obtained by contacting Resolution Life. This general advice has been prepared without taking into account your particular financial needs, circumstances or objectives. You should consider the appropriateness of this information in light of your circumstances. This advice is based on our understanding of current law as at July 2022, and is based on its continuance unless stated otherwise. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. Resolution Life do not actively monitor breach of superannuation contribution caps. You should keep track of the contributions made to your account in respect of the caps applicable to you. You should obtain professional advice before acting on the information contained in this communication. Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information. Resolution Life is also not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.

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