Superannuation is Australia's most tax-effective savings vehicle — earnings inside super are taxed at just 15% (or 0% in pension phase), far below standard investment income tax rates. In 2026, three key strategies allow you to legally and efficiently boost your superannuation balance: salary sacrifice, personal deductible contributions, and spouse contributions. Here is how each works and how to maximise the benefit.

1. Salary Sacrifice into Super

Salary sacrifice allows you to redirect part of your pre-tax salary directly into super before income tax is applied. These contributions are taxed at 15% inside the fund — versus your marginal rate of up to 47%. The saving is the difference between your marginal rate and 15%.

Example: An employee earning $120,000 (37% marginal rate) who salary sacrifices $10,000 per year saves 37% - 15% = 22% = $2,200 in tax per year, while also growing their super balance.

  • Concessional contributions cap 2025-26: $30,000 total (including employer SG contributions)
  • Important: Salary sacrifice reduces your take-home pay dollar-for-dollar — ensure you can afford the cash flow reduction
  • Set up through: Your employer's payroll team — usually a simple form

2. Personal Deductible Contributions (Self-Employed or PAYG)

If you are self-employed or receive wages with spare cash to invest, you can make a personal contribution to your super fund and claim a tax deduction for it. The contribution is taxed at 15% inside the fund, and you receive a deduction at your marginal rate — achieving the same tax saving as salary sacrifice.

  • Lodge a "Notice of Intent to Claim a Deduction" (form NAT 71121) with your super fund before lodging your tax return or before 30 June of the following year
  • Subject to the same $30,000 concessional cap
  • Available to employees too — not just self-employed (since 2017 rule changes)

3. Catch-Up Concessional Contributions

If your total super balance was below $500,000 on 30 June of the prior year, you can carry forward unused concessional contribution cap space from up to 5 prior years and make a larger concessional contribution in the current year. This is particularly valuable for those who took time off work (career breaks, parenting, illness) and want to accelerate super contributions now.

Spouse Contributions and Tax Offset

If your spouse earns under $37,000, you can contribute up to $3,000 to their super and receive a tax offset of up to $540. The offset phases out entirely when your spouse's income reaches $40,000. Spouse contributions also boost your spouse's retirement savings using after-tax dollars (non-concessional), which grow tax-effectively inside super.

Frequently Asked Questions

What is the super concessional contributions cap for 2025-26?

The concessional contributions cap is $30,000 per person for the 2025-26 financial year. This includes your employer's SG contributions (12% of ordinary time earnings), salary sacrifice amounts, and personal deductible contributions. If your employer contributes $12,000 in SG, you have $18,000 of cap remaining.

What is the super guarantee rate in 2026?

The Super Guarantee (SG) rate is 12% of ordinary time earnings for the 2025-26 financial year. It will remain at 12% indefinitely — the legislated increase schedule reached its final rate of 12% on 1 July 2025.

Want to boost your super and reduce your 2026 tax bill? Contact AWTS — our advisers help you develop a superannuation contribution strategy tailored to your income and retirement goals.