The decade before retirement is when super strategies often have the greatest impact. With a shorter compounding window, the focus shifts from return maximisation to contribution optimisation and tax efficiency. Several strategies become available as you approach and reach specific age thresholds.
Strategy 1 — Maximise Salary Sacrifice
Salary sacrifice remains one of the most effective ways to boost super close to retirement, particularly for those in higher marginal tax brackets. Every dollar salary sacrificed into super is taxed at 15% rather than your marginal rate.
Example: At age 55 on a $120,000 salary, increasing salary sacrifice from the employer SG default (11.5% = $13,800/yr) to $25,000 per year adds $11,200 in extra concessional contributions. The tax saving compared to taking those amounts as income at 34.5%: approximately $2,185 per year.
The cap: Concessional contributions (employer SG + salary sacrifice + personal deductible contributions) are capped at $30,000 per year in FY2025–26. Do not exceed this, or the excess will be taxed at your marginal rate.
See Salary Sacrifice Super Explained for the full guide.
Strategy 2 — Catch-Up Concessional Contributions
If your total super balance was under $500,000 at 30 June of the previous financial year, you can carry forward unused concessional contribution cap space from the preceding five years and contribute more than the standard $30,000 cap in a single year.
Example: Maya is 58. In FY2021–22 through FY2024–25, she used an average of $18,000 per year in concessional contributions (employer SG only), leaving approximately $9,500 unused per year. She has $38,000+ in carried-forward cap space available in FY2025–26 and could contribute up to $68,000 in concessional contributions this year.
This is particularly valuable for people who had reduced contributions during:
- Parental leave or carer’s leave
- Part-time working periods
- Periods of self-employment with irregular contributions
See Catch-Up Super Contributions for eligibility details and the full calculation method.
Strategy 3 — Spouse Super Contributions
If your partner has a lower super balance — perhaps due to time out of the workforce, part-time work, or career breaks — you can make after-tax contributions to their super account and potentially receive a tax offset.
Spouse contribution tax offset:
- Contribute up to $3,000 into your lower-income spouse’s super
- Your spouse must have income under $40,000 per year (in FY2025–26)
- You receive a tax offset of 18% of the contribution — up to $540 per year
- Offset reduces by $0.18 for every dollar of spouse income above $37,000; phases out completely at $40,000
This is a relatively modest benefit but is straightforward and supports the lower-income partner’s retirement savings.
Additionally, splitting concessional contributions with a spouse allows you to direct up to 85% of your concessional contributions from the previous year into your spouse’s account — which can help equalise balances and avoid transfer balance cap issues at retirement.
See Spouse Super Contributions Explained for full details.
Strategy 4 — Non-Concessional Contributions (After-Tax)
If you have savings outside super and want to move them into the tax-efficient super environment, after-tax (non-concessional) contributions allow you to contribute from your existing savings without the contribution being taxed again on the way in.
Annual cap: $120,000 per year (FY2025–26)
Bring-forward rule (under age 75): If you are under age 75 at the start of the financial year, you may be able to bring forward up to three years of non-concessional contributions in a single year — up to $360,000 — if your total super balance is under the bring-forward threshold.
| Total Super Balance at 30 June | NCC Bring-Forward Available |
|---|---|
| Under $1.66 million | Up to $360,000 over 3 years |
| $1.66M–$1.78M | Up to $240,000 over 2 years |
| $1.78M–$1.9M | Up to $120,000 (no bring-forward) |
| $1.9M or more | Nil — no NCC available |
Non-concessional contributions do not attract a tax deduction but the balance grows inside super at the concessional earnings tax rate (15% in accumulation, 0% in pension phase).
Strategy 5 — Downsizer Contribution (Age 55+)
The downsizer contribution allows eligible Australians to contribute up to $300,000 per person ($600,000 per couple) into their super fund from the proceeds of selling their principal place of residence — without it counting toward the standard non-concessional contribution cap.
Key eligibility rules:
| Requirement | Detail |
|---|---|
| Minimum age | 55 (reduced from 65 to 60 to 55 in staged legislation; 55 since 1 January 2023) |
| Property type | Must be your principal place of residence |
| Property ownership period | You or your spouse must have held it for at least 10 years |
| CGT main residence exemption | Must be fully or partially eligible for the CGT main residence exemption |
| Contribution timing | Must be made within 90 days of settlement of the property sale |
| Once only | Can only use the downsizer contribution once in your lifetime |
What’s excluded: Investment properties, vacation homes, and properties held under 10 years are not eligible. The property does not need to have been your residence for the entire 10 years — just at some point, and the CGT partial exemption must apply.
The balance doesn’t have to be under the general NCC cap
The downsizer contribution is separate from the $120,000 non-concessional cap. You can make a downsizer contribution even if your super balance is over $1.9 million (the threshold at which normal NCCs are no longer permitted) — but note that the Transfer Balance Cap ($2.0M in FY2025–26) may limit how much can go into pension phase.
Tax on downsizer contributions
The contribution enters super as a non-concessional (after-tax) component — no tax is payable on the contribution itself. Earnings within super are then taxed at 15% (accumulation) or 0% (pension phase).
Who benefits most
The downsizer contribution is most powerful for:
- Those aged 55–70 who have lived in a high-value home for many years
- Those with room under the transfer balance cap
- Couples (each person can contribute $300,000 — total $600,000 from one property sale)
- Those looking to transition from a larger home to a smaller one and boost retirement savings in the process
Strategy 6 — Last-Minute Non-Concessional Contributions Before 75
The ability to make non-concessional contributions without a work test was extended to age 74 from 1 July 2022. From age 75, voluntary contributions become very limited (except downsizer contributions, which remain available regardless of age, subject to rules above).
If you are approaching 75, consider whether you have savings outside super that would be better placed inside the super environment — where earnings will be taxed at 15% (or 0% in pension phase) rather than at your marginal rate.
Quick Reference — Key Thresholds
| Strategy | Annual Cap | Age Limit |
|---|---|---|
| Concessional contributions (salary sacrifice) | $30,000/yr | 75 (work test may apply 67–74) |
| Non-concessional contributions | $120,000/yr (or $360k bring-forward) | 74 (without work test from 67) |
| Downsizer contribution | $300,000 lifetime per person | 55 minimum |
| Catch-up concessional contributions | Carry forward unused cap (5 years) | Requires balance under $500k |
| Spouse contribution tax offset | $3,000 contribution | Spouse income under $40,000 |
Frequently Asked Questions
Can I use the downsizer contribution and also make non-concessional contributions in the same year? Yes — if you’re eligible for both, they are separate. You could make a $300,000 downsizer contribution and also a $120,000 non-concessional contribution in the same year (subject to your total super balance threshold for the NCC).
Does the downsizer contribution affect the Age Pension? Potentially yes. Money moved into super via a downsizer contribution counts as an asset in the Age Pension assets test once you reach pension age (67). If the property sale proceeds were previously in your home (which is exempt), moving those proceeds into super may reduce or cancel Age Pension payments. This is a complex interaction — consider professional advice if you are near pension eligibility.
I’m 62 and plan to sell my home to downsize — should I put the proceeds into super? This depends on your full financial picture: your current super balance, the Transfer Balance Cap, your Age Pension eligibility timeline, and your income needs. The downsizer contribution can be highly beneficial for those with room under the TBC and a few years before pension age — but it’s not universally the right choice. A licensed financial adviser can model the specific numbers for your situation.
Can I salary sacrifice if I’m 70 and still working? Yes — people aged 70 or over who are still working can make concessional contributions (including salary sacrifice), subject to the $30,000 annual cap. The work test was abolished for those aged 67–74 for non-concessional and personal deductible contributions from 1 July 2022.
See also: Super Strategies. For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.