Grow your super with extra contributions.

There’s a lot to love about super – after all, it’s your money for the future! And a few easy steps can be all it takes to supersize your Retirement Savings Account (RSA).

Why should I add to my super?

No matter whether retirement is a long way off or just around the corner, growing your super will give you more money to enjoy when you hang up your work boots.

Thanks to the power of compounding results, a few extra dollars in super today can grow to considerably more further down the track.

Three ways to grow your super.

Check out our three easy-as ways to give your super a boost. As you’ll see, growing super for tomorrow can also deliver benefits today.

1. Make a before-tax contribution.

An easy way to give your super a lift is by talking to your leader or payroll officer about salary sacrificing part of your before-tax wage or salary into super instead of receiving the money in your regular pay cheque.

Importantly, an annual limit of $27,500 applies to before-tax super contributions. Bear in mind this total includes the boss’s super contributions, any salary sacrificed contributions, and your own voluntary before-tax contributions.

2. Add some after-tax money.

Maybe you’ve received an inheritance, sold an investment property, or perhaps you’re keen to shift some savings into super’s low tax environment ahead of full-time retirement.

If that sounds like you, it’s possible to really ramp up your super by making after-tax contributions.

These are limited to $110,000 annually1. If you’re aged under 67, you may even be able to bring forward up to three years’ worth of contributions, and grow your super by $330,000 in a single year2. If you have a spouse or partner, you can really double down on these amounts.

Alternatively, if you are downsizing your own home, you can add up to $300,000 into your RSA from the sale of your own home without affecting other contribution limits. For ‘Downsizer Contributions you must be 65 years old or older (other rules also apply). From 1 July 2022, the eligible age is 60 years old or older.

Best of all, there is no contribution tax on your after-tax contributions.

3. Get the government to chip in.

Free money from the government? That’s what the handy ‘co-contribution’ scheme is all about.

If you earn less than $41,112 annually (FY2021/2022) and make an after-tax super contribution, the government may chip in an extra 50 cents for every $1 you deposit – up to a limit of $500.

So if you tuck $1,000 into super from your own pocket, you could receive the maximum co-contribution of $500.

You can be eligible for a partial co-contribution even if you earn more than $41,112. As a guide, if you earn up to $51,112 and add at least $334 to your super from after-tax money, you could receive a co-contribution of $167.

Calculate your co-contribution eligibility here.

Important: As with anything related to your super, getting good advice is essential. Head to the Tax Office website for details on growing super, or speak with your accountant or financial adviser for information tailored to your circumstances.

Don’t delay!

Keen to make a deposit to your RSA before 30 June? Don’t leave it too late.

The end of the financial year is a busy time for all of us. To be sure your contributions reach your RSA ahead of 30 June 2022, we recommend making the deposit at least a week before. So, set a calendar note for 23 June and you’re good to go!

Learn more about the Defence Bank RSA.


The advice provided to you has not taken into account your objectives, financial situation or needs. You should note that before you act on the advice you will need to consider the appropriateness of the advice having regard to your objectives, financial situation and needs. If the advice that you have received relates to the acquisition of a product, you should obtain a Product Disclosure Statement relating to the product and consider the Product Disclosure Statement and TMD before making any decision about whether to acquire the product.



More in this category:
All articles.