Yes, you can contribute $300,000 into your superannuation as a "downsizer contribution" if you are aged 55 or older and selling your main home. This allows individuals to boost their super, regardless of work status or existing contribution caps. Couples can contribute up to $600,000 ($300,000 each).
There's a limit to how much extra you can contribute. The combined total of your employer and other pre-tax super contributions cannot be more than $30,000 per financial year. Any amount in excess of this will be subject to extra tax.
You can add money to your super as a once-off payment or as regular payments. But there's a limit, called a contribution cap. In 2025–26 financial year, you can make up to $120,000 of non-concessional contributions. Check the bring-forward rules for a higher limit.
You can carry forward any unused amounts from up to 5 previous financial years. This lets you take even more advantage of the low tax rates for super contributions. Your total super balance must be less than $500,000 at 30 June of the previous financial year in which you wish to make the extra contribution.
Non-concessional contributions (undeducted contributions)
Under 74: can contribute up to $100,000 per financial year.
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.
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.
You can carry forward unused cap amounts from up to 5 previous financial years, including when you were not a member of a super fund. Unused cap amounts are available for 5 years and expire after this.
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.
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 non-concessional (after-tax) contributions cap for the 2025/26 financial year is: $120,000 per year; or. $360,000 in a rolling three-year period under the bring forward provision. If you're under age 75, you can bring forward two years of non-concessional contributions without triggering a tax penalty.
Technically, yes – but there are significant factors to weigh before pursuing this route. While spending down your super may reduce your assessable assets and potentially increase the Age Pension you're eligible for, it's crucial to consider how this could impact your financial security and lifestyle in retirement.
Government co-contribution
The maximum co-contribution is $500 each year you're eligible. What's the tax concession? A government co-contribution isn't included as part of your taxable income, so you don't pay any tax on it when it's paid into your super.
Any contributions you make over the cap will be taxed at your marginal rate, less a 15% tax rebate. You may also be charged interest.
Five tips to boost your super
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.
If you exceed your TBC, the Australian Taxation Office will require you to commute (roll back) the excess amount, as well as notional earnings on that amount, to the accumulation phase. You'll also pay Excess Transfer Balance Tax of: 15% on notional earnings for a first breach, and. 30% for subsequent breaches.
You can continue to contribute to super until you turn 75. Superannuation contribution limits continue to apply and those aged 67-75 will need to meet a work test if you intend to claim a taxation deduction in relation to personal contributions made to super.
The tax code provides "catch-up" savings opportunities so that people age 50 and older can increase their tax-advantaged contributions to IRAs, 401(k)s, and HSAs (starting at age 55). Taking advantage of catch-up contributions can deliver a significant boost to your retirement saving.
You can access your super: From age 60: If you're retired or leave a job. You can also open a Transition to Retirement account to access some of your super while you're still working.
The benchmark reflects the longer time savings must last and the delay in Social Security eligibility. For someone expecting to spend $60,000 annually in retirement, that would mean accumulating roughly $2 million in savings by age 55.
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Australians aged between 60-64 have an average super balance of $401,600 for men and $300,300 for women1. The Government Age Pension acts as a safety net to support the basic cost of living in retirement. However, it's still important to have a figure in mind as your ideal retirement savings goal.