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Superannuation Advice
Super isn’t just a retirement account. It’s the most tax effective structure most Australians will ever have.
Contributions inside the cap are taxed at 15% going in. If you’re a senior tech professional, the next dollar you earn is probably taxed at 47%. That gap is where the value sits. I make sure you use it on purpose, not by default.
Why super
Why Superannuation Is Australia’s Most Powerful Tax Structure
The 15% concessional tax rate is the number that matters. Add your base, your bonus and your vested shares together and you’re likely on the top marginal rate. Every dollar you redirect into super inside the cap is taxed far lower.
It’s one of the few tax structures open to employees, not just business owners. And it doesn’t need anything exotic.
If your income and concessional contributions are over $250,000, Division 293 adds another 15%. That takes the rate on those contributions to 30%. It’s still well below 47%. More on Division 293 from the ATO.
The mistake I see most
Treating super as set and forget.
- A default contribution rate.
- A fund chosen years ago and never reviewed.
- A balance that grows by accident, not by design.
Super left alone still works. It works a lot harder with a deliberate strategy behind it.
The big question
Mortgage vs Super: Where Should Your Extra Cash Go?
There’s no universal answer. It depends on your time horizon, how much cash you’ll need before preservation age, current interest rates, and whether debt recycling is already part of your plan. The better question is which of those factors applies to you.
Extra into super
- Taxed at 15% going in, not your marginal rate
- Compounds inside a low tax structure
- Locked away until preservation age
Powerful over time. But the money isn’t there if you need it sooner.
Extra onto the mortgage
- Cuts non deductible debt and interest
- Frees up cash flow sooner
- Stays accessible through redraw or offset
No tax benefit going in. But it’s flexible and certain.
The third option: debt recycling
If you have equity in your home, the choice often isn’t binary. Debt recycling turns part of your mortgage into a tax deductible investment loan, which changes the maths on both sides.
In practice, most people are comparing salary sacrifice into super with putting the same money into extra mortgage repayments. Both are legitimate. The right split depends on the factors above, not a fixed rule.
I walk through how this trade-off has played out for clients in this video.
Contribution strategy
Getting Contribution Strategy Right
There are two ways to make a concessional contribution. Many high earners only know one.
Concessional Contributions
Salary sacrifice runs through your employer. Part of your pre tax salary goes into super before you’re paid.
A personal deductible contribution works the other way. You put money in after tax, then claim a deduction. It suits variable income, bonuses and vested shares that don’t fit a fixed salary sacrifice.
Getting the mix right usually comes down to how predictable your income is through the year.
Catch-Up (Carry-Forward) Contributions
If your total super balance was under $500,000 at the previous 30 June, you can use unused concessional cap from up to the past 5 years in one year.
It’s most useful in a big bonus year, when you sell a block of vested shares, or after an inheritance.
| Concessional cap, 2026/27 | $32,500 |
| Non concessional cap, 2026/27 | $130,000 |
Combine your base salary and bonus and hitting the concessional cap is common. That’s exactly why carry forward and non concessional strategies matter for you. Caps are indexed, so always check the ATO’s current contribution caps before you act.
Next stage
Moving From Accumulation Into Retirement
At some point the focus shifts. You stop building a balance and start drawing an income from it. Then drawdown order, structure and timing matter more than contribution strategy.
That involves more than super alone: your other assets, your timing, and how your income needs change when your salary stops.
Covered in full on my Retirement Planning page
- Account based pensions
- Sequencing risk
- Transition to retirement strategies
Video
Watch: Superannuation, Explained
The basics of making super work harder for you.
Also worth a watch: Super catch up contributions.
83 LinkedIn recommendations
What clients say on LinkedIn.
Questions
Frequently Asked Questions
Should I pay off my mortgage or put extra money into super?
There’s no universal answer. It depends on your time horizon, the cash you’ll need before preservation age, and whether debt recycling is already part of your plan. Super gets the tax break, the mortgage gives you flexibility, and debt recycling is a third option worth weighing. A personalised comparison beats a general rule.
What are the current superannuation contribution caps?
For 2026/27, the concessional cap is $32,500 and the non concessional cap is $130,000. Caps are indexed, so always check the ATO’s current figures before you act.
Can I use superannuation to reduce my tax?
Yes. Concessional contributions, through salary sacrifice or a personal deductible contribution, are taxed at 15% instead of your marginal rate, or 30% if Division 293 applies. How much you save depends on your income and how much cap you have left. More on my Tax Planning page.
I got a big bonus this year. Can I still make a big super contribution?
Possibly, through carry forward concessional contributions. If you didn’t use your full cap in the past 5 years and your total super balance was under $500,000 at the previous 30 June, you may be able to catch up in one year. It’s worth checking properly before you assume either way.
Should I salary sacrifice or make a personal deductible contribution?
Both get the same tax treatment. Salary sacrifice suits steady income and runs automatically. A personal deductible contribution suits bonuses, RSU sales and variable pay, because you choose the amount and timing. Many of my clients use both.
Create an income for life
Make your super work on purpose.
15 minutes. No cost, no obligation.
