What super contributions are best for me?

Need to know

The ASIC calculator does not give you the option to make bring-forward non-concessional contributions from either of the following two financial years (if you are eligible), nor does it allow you to enter information if you have used the bring-forward rule in either of the previous two financial years.

For more information about the bring-forward rule, see SuperGuide article A super guide to the bring-forward rule.

Super tip

Your results from ASIC’s Super Contributions Optimiser calculator are only applicable for the current financial year, as the super contributions and taxation rules change regularly.

If you are planning your contributions mix for the next few years, it’s important to recheck the calculator on a regular basis – such as yearly – as your best mix of contributions may change over time.

For more information, read SuperGuide articles:

• Superannuation Guarantee (SG) contributions rate and rules
• Salary sacrifice and super: How does it work?
• How do tax-deductible superannuation contributions work?

For more information, read SuperGuide articles:

• Non-concessional super contributions guide (2021–22)
• Contributions splitting: How to boost your spouse’s super

For more information, read SuperGuide articles:

• How a government co-contribution can help boost your super savings
• How LISTO works (Low Income Superannuation Tax Offset)

Important: These case studies are presented as general information only and are solely intended to give you ideas on aspects you may need to consider when making additional super contributions. They do not take into account all aspects of someone’s financial or other situation, and should not be construed as general or personal advice.

The case studies below reflect the SG contribution rate (10%), contributions caps and tax rates applying in 2021–22.

Case study 1: Starting out in the workforce

Min is a first-year apprentice electrician living at home with his parents. Under the award, his pay and allowances give him an annual salary of $27,000 and his employer is making the normal 10% SG contributions on his behalf.

Even though he is only 20, Min’s parents are keen for him to start saving towards his retirement. To encourage him to put more into his super, his parents do not make Min pay rent, leaving him with $100 out of his weekly take-home pay of $498 to contribute into his super account.

To get the biggest boost to his super, Min should consider making $73 a week as a before-tax contribution through a salary-sacrifice arrangement with his employer and another $48 a week as a non-concessional (after-tax) contribution.

Case study 2: Married with children

Aged 40, Jason is a logistics supervisor in the coal industry, while his 36-year-old wife Leigh-Anne earns $35,000 as an admin assistant at a large childcare centre. Following a recent promotion, Jason’s new salary of $72,000 gives them the opportunity to put a little more into their super accounts.

With two small daughters and a large mortgage to pay off, Jason and Leigh-Anne don’t have a lot of spare cash each week, but they believe they can manage to put $160 a week into their super accounts.

A good option for them to consider when it comes to their super contributions is for Jason to make a $218 salary-sacrifice contribution each week from his before-tax salary and for Leigh-Anne to make a $19 per week non-concessional (after-tax) contribution.

Case study 3: High income, low super

Nasir is a 49-year-old app developer who has created several successful IT ventures that provide him with an annual income of $192,000. As he is self-employed through his own company, Nasir has used most of his income in recent years to fund his businesses and so has little saved for his retirement years – although he does own his own home.

To help boost the low balance in his super account, Nasir is keen to make some significant contributions over the next few years – even if it means being very careful with his spending. In 2021–22 he plans to contribute $80,000 from his take-home pay of $131,093.

In order to get the biggest boost to his super account, Nasir could consider making $8,300 a year in salary-sacrifice (before-tax) super contributions and $75,601 a year in non-concessional (after-tax) contributions.

Case study 4: Nearing retirement

Robert is aged 60 and is in his final few years of employment as a mid-level manager with a large corporation on an annual salary of $65,000. His wife Carlene is aged 58 and works part time as a dental assistant earning $25,000 a year. Their employers are making the normal SG contribution of 10% into their super accounts.

As they have paid off their mortgage and their two children have left home, Robert and Carlene feel they could spare around $3,500 from their combined monthly take-home pay of $6,475 to add to their super accounts.

To get the biggest boost to their super, Robert should consider making $1,667 a month in before-tax (salary-sacrifice contributions). Carlene should make a $148 per month salary-sacrifice contribution and a $83 per month non-concessional contribution.

Case study 5: Over 60

Arjun is a 68-year-old solicitor working four days a week in a local practice, while his 64-year-old wife Prisha works two days each week as a receptionist at a fitness centre. Arjun earns an annual salary of $78,000 while Prisha earns $250 a week ($13,000 per year).

They are both keen to grow their super account a little more before they finish working and believe they can afford to contribute $38,000 a year into their super accounts from their combined annual take-home pay of $74,703.

For their best mix of super contributions, Arjun should consider salary sacrificing $19,700 a year into his account, together with making a $24,222 non-concessional (after-tax) contribution.

Given Prisha’s low income, her best super contribution would be to make a $1,000 non-concessional (after-tax) contribution.