Some contributions (such as SG payments and other ‘concessional contributions’ listed below) are taxed at 15% in your fund rather than the marginal tax rate you pay on your income. Earnings on investments in your fund are also generally taxed at 15%. Depending on your income, this could save you tax, leaving you more super in your account to invest.

There are two main ways to add extra before-tax amounts to your super account.

This involves diverting some of your income directly into your super account rather than receiving it in your regular pay. 

To set up a salary sacrifice arrangement, you would need to talk to your employer, especially because not every employer allows it.  

If you can salary sacrifice, you can nominate a dollar amount or percentage of your pay each pay period to go into super. You receive tax benefits straight away because the money is taxed inside super at 15%, rather than pay-as-you-go in your take-home pay. 

This method sets you up with a regular savings plan, but you will need to keep track to make sure you don’t exceed your contribution cap over the tax year, for example, if you get a pay rise that increases your SG or percentage-based salary sacrifice contribution. 

Even if your employer does not allow salary sacrifice, you can usually make a tax-effective addition to your account using a personal deductible contribution. This is an arrangement you make directly with your super fund. You will need to confirm your eligibility and fill in the relevant form with your super fund, as well as note your contribution in your tax return. 

The tax outcome for your super fund and your take-home pay are similar at the end of the tax year to what they would be if you had been using a salary sacrificing arrangement, but you will need to wait until you complete your tax return to receive the tax benefit.  

This option can work well if you want to add extra amounts to super from sources other than your pay, for example, when you sell an investment or if you receive an inheritance. Salary sacrifice only works with employment income. Another point to remember is that personal contributions (generally from ‘after-tax’ money) become concessional contributions once put into super with a 15% per year tax rate. 

Here's an example of how adding extra before-tax amounts could work.

Sam’s salary is $85,000. If he salary sacrifices $5,000 to super, he will pay $750 in contributions tax instead of $1,500 in income tax, giving him $750 more to invest.

Taking the above example a step further, say Sam is 30 years old and already has $50,000 in his super account. He plans to work to age 67, when he will be able to access his superannuation. 

By salary sacrificing $5,000 each year, Sam would have around $248,328 more in his fund at retirement than if he relied on his employer contributions alone. 

Explore GoalTracker^®  via your online account to find out more about how you could increase your superannuation balance.

GoalTracker lets you set your retirement income goal and find out if you’re on track to get there. From there, it’s easy to explore your options and next steps. Importantly, it can help you look at how different contribution levels can get you closer to your retirement income goal.  

Remember, this is only general information and doesn’t consider your objectives, financial situation or needs. Before you make an investment decision, you need to consider whether this information is appropriate for you. If you'd like personal advice, give us a call and we can refer you to the appropriate person.

¹ Compulsory Superannuation Guarantee (SG) employer contributions are paid in addition to this amount and are not reduced by salary sacrifice.
² Estimates only based on 2026-27 income tax rates, exclusive of the Medicare Levy.
³ Estimates using Moneysmart superannuation calculator, based on starting super balance of $50,000, current age 30, retirement age 67, default fees, and 6.1% "balanced" investment return.

Issued by Total Risk Management Pty Limited ABN 62 008 644 353, AFSL 238790 (TRM) as trustee of Russell Investments Master Trust ABN 89 384 753 567. Nationwide Super and Resource Super are Divisions of the Russell Investments Master Trust. The Product Disclosure Statement (‘PDS’), the Target Market Determinations and the Financial Services Guide can be obtained by phoning 1800 555 667 or by visiting russellinvestments.com.au, or for Nationwide Super by phoning 1800 025 241 or visiting nationwidesuper.com.au, or for Resource Super by phoning 1800 824 227 or by visiting resourcesuper.com.au. Any potential investor should consider the latest PDS in deciding whether to acquire, or to continue to hold, an investment in any Russell Investments product. Russell Investments Financial Solutions Pty Ltd ABN 84 010 799 041, AFSL 229850 (RIFS) is the provider of MyTracker and the financial product advice provided by GoalTracker Plus. General financial product advice is provided by RIFS or MUFG Retire360 Pty Limited (Retire360) ABN 36 105 811 836, AFSL 258145. Limited personal financial product advice is provided by Retire360 with the exception of GoalTracker Plus advice, which is provided by RIFS. Russell Investments Employee Benefits Pty Ltd (70 099 865 013) (RIEB) is the provider of the Super Tracker Mobile App.

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