Yes, you can make a lump sum contribution to your superannuation, either as a voluntary after-tax contribution (non-concessional) or by claiming a tax deduction (concessional). For the 2025–26 financial year, you can generally contribute up to $120,000 in after-tax contributions annually, or potentially more using bring-forward rules. Payments are typically made via BPAY or direct debit to your fund.
The maximum you can contribute is $300,000 or the sale price of your home, whichever is less. You may make more than one contribution, but the total must not exceed this maximum.
Grow your super with extra contributions. You can grow your super by making extra payments yourself. Even small amounts add up over time, and voluntary contributions can reduce the amount of tax you pay. If you're on a low income, you may be eligible for extra contributions from the government.
Non-concessional contributions (undeducted contributions)
Under 74: can contribute up to $100,000 per financial year.
Retiring at 60 with $500,000 in super is possible but challenging, depending heavily on your spending, lifestyle, and if you qualify for the Australian Age Pension. You might cover modest expenses using strategies like drawing down around $20,000 annually (using the 4% rule as a guide) plus other income, but it requires careful budgeting, potentially part-time work, and reducing living costs. A financial advisor can help tailor a plan, as $500k alone usually supports a basic to moderate retirement, not a lavish one.
The standard non-concessional contributions cap for the 2024/25 financial year is $120,000. Your eligibility to contribute more than this limit in a single year may be influenced by your total super balance as of 30 June 2023, among other criteria, through the 'bring-forward' rule.
In the organisation's super balance update, it found 2.5 per cent of the population have a super account of more than $1 million, as of June 2021. This represents 417,567 individuals, ASFA said, and is a 29 per cent increase from the 322,200 individuals who held over $1 million in June 2019.
Five tips to boost your super
The 3-year bring-forward rule allows Members in an SMSF to contribute more than the Non-Concessional Contribution (after-tax Contributions) cap of $120,000 during a 3-year financial period from 1 July 2024. From 1 July 2021 to 30 June 2024, the non-concessional contributions cap was $110,000.
“On the one hand, contributing more to your super may increase your final retirement income. On the other, making extra mortgage repayments can help you clear your debt sooner, increase your equity position and put you on the path to financial freedom.”
It meant retirees could easily calculate how much they needed to save for retirement - by simply dividing the amount of money they would like to spend each year by the withdrawal rate. So if they wanted $50k each year from their portfolio at a 4% withdrawal rate, they could divide $50k by 4%, equalling $1.25 million.
Currently the transfer balance cap is $2 million. After you retire any amounts over the cap need to be transferred into an accumulation account or withdrawn taken out as a lump sum. Earnings on any excess amount in your retirement account are taxed at 15%.
With that being said, what is a wealthy retirement? Well, according to ASFA, a comfortable retirement for a couple is around $75,000 per year and $53,000 for a single person. Given this, I would consider achieving a retirement income of, say, 30% over these amounts to be a wealthy retirement.
The Million-Dollar Reality Check
According to Fed data, just over half of Americans (54.3%) have retirement accounts, and of those, less than one in 20 (4.7%) have reached the $1 million mark.
If you decide you want to put money from an inheritance into your super, you usually can, by making a voluntary contribution or a spouse contribution. There are limits on how much you can contribute to your super per year, so make sure the amount you contribute to your super is within these limits.
The Drawbacks of Lump Sum Investing
If the market drops soon after you invest, you could see a substantial portion of your investment's value erode quickly. This volatility can be particularly concerning for risk-averse investors or those who are new to the market and may not be comfortable with such fluctuations.
You and your spouse can each put in up to $300,000 into super (capped at the amount you receive from selling your home).