Whether early in one’s career or approaching retirement, taking small, consistent steps to grow superannuation can lead to significant long-term benefits. With the right strategies and awareness of policy changes, Australians can better navigate the evolving super landscape and retire with more.
As Australia’s $4 trillion superannuation system faces increasing scrutiny and reform, individuals are being urged to take proactive steps to secure their financial future. With new taxes on large super balances and heightened regulatory focus on fund performance and governance, now is a critical time for Australians to reassess how they grow their retirement savings.
Most people who walk through financial advisory offices believe superannuation is a “set and forget” system. They assume it is ticking along in the background and will somehow be enough when retirement comes. But the reality is, many are not taking advantage of simple, practical strategies that can make a big difference over time.
These are not complex financial strategies—they are small, achievable steps that do not take long to implement but can significantly boost retirement savings.
1. Review Your Super Fund Regularly
Selecting the right super fund is essential to achieving long-term retirement goals. The Australian Taxation Office’s YourSuper comparison tool allows users to evaluate fund performance, fees, and features, helping them make informed decisions.
With the government tightening performance benchmarks and increasing transparency requirements for funds, it is more important than ever to ensure your fund is competitive. Regularly reviewing your fund can help you avoid underperforming options and take advantage of better investment strategies.
2. Use Salary Sacrificing to Your Advantage
Salary sacrificing remains one of the most tax-effective ways to grow superannuation. By contributing pre-tax income into a super fund, individuals reduce their taxable income and benefit from the concessional 15% tax rate on contributions—significantly lower than most marginal tax rates.
Even modest contributions can make a big difference. For example, contributing an extra $20 per week from salary could add tens of thousands of dollars to a super balance over time, thanks to compound growth.
This strategy is especially relevant as the government considers further reforms to ensure the sustainability of the super system amid a wave of Baby Boomer retirements.
3. Make Lump Sum Contributions and Claim Deductions
Another effective strategy is making lump sum contributions from after-tax income and claiming a tax deduction. This can be done easily via BPay or bank transfer, followed by submitting a notice of intent to claim a deduction to the fund.
Once processed, the contribution is taxed at 15%, and the amount can be claimed as a deduction on the tax return—potentially increasing the refund. This approach is particularly useful for those with irregular income or windfalls, such as bonuses or asset sales.
A System Under Pressure—But Full of Opportunity
Recent discussions at the AFR Super & Wealth Summit highlighted the growing pressure on the super system to deliver better retirement outcomes while managing longevity risk and intergenerational equity. With the government introducing taxes on balances above $3 million and exploring reforms to advice accessibility, individuals are being encouraged to take greater ownership of their retirement planning.
Experts also emphasised the importance of aligning super investments with national priorities like housing and energy transition, offering both growth potential and societal impact.
Despite calls for an overhaul of the tax system, Treasurer Jim Chalmers has reaffirmed the government’s commitment to maintaining concessional treatment for retirees. Speaking on ABC’s Insiders program, Dr Chalmers stated, “They still deserve concessional treatment to encourage people to be in superannuation, and that is not something that we have been proposing to change.”
He acknowledged the need for fairness across generations, noting that intergenerational equity would be central to any future tax reforms. However, he emphasised that changes would be approached in a consultative and considered manner.
“There was no rewriting of policies at the conclusion of the roundtable,” Dr Chalmers said. “More broadly, intergenerational equity has been a motivation for so much of what we are already doing in tax.”
The treasurer confirmed that proposed changes to tax on super balances over $3 million would not be introduced in the upcoming parliamentary sitting fortnight but would be brought in eventually.
“I proposed what is a pretty modest change, but a meaningful change which makes the system a bit more sustainable,” he said. “It does not begin to be calculated until the second half of next year, and so we have got time to reintroduce that.”
Meanwhile, shadow treasurer Ted O’Brien admitted the coalition misjudged its tax position ahead of the May federal election but warned that continued government spending could lead to further tax increases.
“If you just keep on spending, you have got to get the money from somewhere,” Mr O’Brien told Sky News. “When you cannot control your spending, you are just going to increase debt and increase taxes. That is pretty clear.”
As the superannuation system evolves, Australians are being urged to take control of their retirement planning. With practical strategies and informed decisions, individuals can navigate the changes and secure a more prosperous future.