For the 2024–25 and 2025–26 financial years, you can contribute up to $30,000 per year in concessional (pre-tax) contributions without paying your top marginal tax rate on those amounts. These contributions, which include employer super guarantee and salary sacrifice, are taxed at a concessional 15% rate inside your fund.
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.
Non-concessional super contributions are payments you put into your super from your savings or from income you have already paid tax on. They are not taxed when they are received by your super fund. — you don't pay any contributions tax.
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.
Only around 3.1 per cent of households have very high total balances of over $2 million. Around 1.4 per cent or 142,000 households have more than $3 million in superannuation.
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 After you retire any amounts over the cap need to be transferred into an accumulation account or withdrawn taken out as a lump sum.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%.
Personal contributions can be made regularly from your after-tax pay, or as a lump sum at any time through the year. Most funds will accept a lump sum contribution from your bank account via BPay or direct debit. You must have supplied your TFN to your super fund before it will accept personal contributions.
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.
How super income streams are taxed. For most people, an income stream from superannuation will be tax-free from age 60. If someone has died and you need information on tax paid on their super death benefit, see tax and super.
The new $3 million super tax is a proposed tax change that will impose an additional 15% tax on investment earnings, including unrealised gains, for super balances exceeding $3 million. This would bring the total tax rate on these earnings to 30%.
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.
Yes — a couple can retire on $700,000 in Australia, particularly if they own their home and are eligible for Age Pension support later in retirement. Retiring at 65 with this balance could mean an annual income closer to or above the ASFA 'comfortable' standard for couples.
Claiming your personal super contributions as a tax deduction, or making a downsizer contribution, may reduce your taxable income. This may reduce the total amount of tax you pay. The amount will vary based on your own personal circumstances.
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.
In June 2021 there were about 55,000 individuals with a balance over $3 million, up from around 35,000 in June 2019. Given recent investment returns and further contributions, the Treasury estimate that by July 2025 there will be around 80,000 individuals with more than $3 million in superannuation is quite reasonable.
You and your spouse can each put in up to $300,000 into super (capped at the amount you receive from selling your home).
$800,000 can last anywhere from 15 to over 30 years in retirement, depending heavily on your annual spending, investment returns, and additional income (like Social Security). A common guideline, the 4% Rule, suggests withdrawing $32,000 in the first year (adjusting for inflation), potentially lasting 30 years; however, higher spending (e.g., $50k-$60k/year) reduces longevity to 20-29 years, while a lower withdrawal rate or income from other sources significantly extends it.
What Does it Take to Be Among the Wealthiest Retirees?
Ten simple ways to grow your super