Most Australians have their super on autopilot — employer contributions go in, they pick a default fund, and that’s the extent of their engagement. But a few well-timed decisions can make a significant difference to your retirement balance.
Here are seven evidence-based strategies that can help maximise your super.
Key Takeaways
- Reducing fees from 1.5% to 0.25% on a $100,000 balance over 30 years can save approximately $180,000 in lost growth
- Salary sacrifice is typically the highest-impact strategy for anyone earning above $45,000 — saving up to 32 cents per dollar contributed
- Review your investment option — a growth option may suit members more than 20 years from retirement
- Catch-up contributions allow you to exceed the $30,000 annual cap if your total super balance is under $500,000
- Always check your insurance before consolidating multiple accounts — closing an old account can cancel cover
1. Reduce Your Fees
Super fund fees compound in reverse — they silently erode your balance every year. The difference between a high-fee fund (1.5% per year) and a low-fee fund (0.25%) on a $100,000 balance over 30 years at 7% growth is approximately $180,000 in reduced final balance.
What to do:
- Check your current fund’s fees via your annual statement or the fund’s website
- Compare using APRA’s MySuper Heatmap (available at apra.gov.au) — it ranks funds by fees and returns
- Index options within your fund (e.g. Hostplus Index Balanced, AustralianSuper Index options) typically charge 0.05–0.1% per year vs 0.6–1.5% for actively managed options
- ASIC’s MoneySmart fee calculator can illustrate the long-term impact of fee differences
See Super Fund Fees Explained and Cheapest Super Funds in Australia for detailed comparisons.
2. Salary Sacrifice Into Super
Making pre-tax (salary sacrifice) contributions to your super reduces your taxable income, and the contributions are taxed at only 15% within the fund — lower than the marginal tax rate for anyone earning above $45,001 per year.
How much extra salary sacrifice saves:
| Income | Marginal Tax Rate | Tax Rate in Super | Saving per $1,000 Contributed |
|---|---|---|---|
| $45,001–$135,000 | 32.5% + 2% Medicare | 15% | ~$195 |
| $135,001–$190,000 | 37% + 2% Medicare | 15% | ~$240 |
| Over $190,000 | 45% + 2% Medicare | 15%–30%* | ~$120–$320 |
*High earners (income over ~$250,000) may pay Division 293 tax of 15% on concessional contributions, bringing the rate to 30% rather than 15%. Even then, at 37–47% marginal rate it remains beneficial.
The concessional contributions cap (FY2025–26) is $30,000 per year, which includes both employer SG contributions (11.5%) and any salary sacrifice. Plan contributions carefully to stay within the cap.
See Salary Sacrifice Super Explained and Super Salary Sacrifice vs Investing Outside Super.
3. Consolidate Multiple Super Accounts
Paying fees in two or more super accounts simultaneously is money wasted. If you have old super accounts from previous employers, consolidating them into one account can:
- Eliminate duplicate administration fees
- Simplify your super management
- Make tracking your balance and performance easier
How to consolidate:
- Log in to myGov and link the ATO
- Under “Super”, the ATO will show all your accounts and allow you to roll them over
- Alternatively, use your current fund’s online portal — most large funds allow you to initiate rollovers
Important: Check whether any accounts have insurance attached before rolling over. Consolidating can cancel insurance in the account being closed. See Consolidating Super for full detail on the insurance considerations.
4. Check Your Investment Option
The investment option (growth, balanced, conservative, cash) can have a massive impact on your long-term balance. Super funds often default members into a “balanced” or “lifecycle” option, which may not match your risk tolerance or investment horizon.
Historical context:
- Growth options (70–90% growth assets) have historically returned around 7–9% per year over 20-year periods
- Conservative options (30–40% growth assets) have historically returned around 4–6% per year over the same periods
- The gap compounds significantly over a 20–30 year career
A 30-year-old in a balanced fund vs a growth fund — over 30 years with a $100,000 starting balance — might see a difference of $150,000+ at retirement (all else being equal). But growth options also carry more short-term volatility.
What to do:
- Check your current investment option in your super portal
- Compare your fund’s option returns against the APRA benchmark
- Consider your age and investment horizon — those with 20+ years to retirement can generally absorb more short-term risk
- Do not switch to a conservative option solely based on short-term market falls
See Super Investment Options Explained and How to Choose a Super Fund for more guidance.
5. Make Personal After-Tax Contributions (and Claim a Deduction)
If you are self-employed, a freelancer, or your employer doesn’t offer salary sacrifice, you can make personal contributions from your after-tax income and then claim a tax deduction — achieving the same tax benefit as salary sacrifice.
How:
- Make a personal contribution to your super fund (from your bank account)
- Lodge a Notice of Intent to Claim a Tax Deduction with your fund before submitting your tax return
- Claim the contribution as a deduction on your tax return — it will be taxed at 15% in your fund instead of your marginal rate
This is subject to the same $30,000 concessional cap. See Personal Super Contributions Explained for the full process.
6. Use Catch-Up Contributions (If Eligible)
If your total super balance is under $500,000, you can carry forward any unused portion of your annual concessional contribution cap from the prior five years and make a larger-than-normal concessional contribution.
Example: In FY2024–25, you only used $20,000 of your $27,500 cap. The unused $7,500 carries forward. In FY2025–26 you can contribute up to $30,000 + $7,500 = $37,500 in concessional contributions.
This is particularly useful after a career break, parental leave, or other period of reduced contributions. See Catch-Up Super Contributions for full eligibility rules and examples.
7. Review Your Super Insurance
Most super funds automatically include default life insurance and TPD cover, with premiums deducted from your super balance. If your cover is excessive for your situation, or if you have duplicate cover across multiple funds, you may be paying more than needed — eroding your balance unnecessarily.
Common situations where reviewing insurance helps:
- Young single with no dependants paying for $2M life cover
- Multiple super accounts all holding default life and TPD cover
- Retired or semi-retired with a large super balance — may not need income protection within super
- Occupation changed — some funds offer cheaper rates for certain occupations, or you may now qualify for cover you previously couldn’t get
What to do:
- Check your fund’s insurance schedule (in your annual statement or online)
- Consider whether the cover level matches your actual needs
- Compare the cost of cover within super vs retail insurance outside super
Quick Reference — Impact Summary
| Strategy | Effort | Potential Impact |
|---|---|---|
| Reduce fees | Low — switch option or fund | Very high — tens of thousands over 20 years |
| Salary sacrifice | Medium — set up via payroll | High — tax saving every year |
| Consolidate accounts | Low — one-off myGov task | Medium — eliminate duplicate fees |
| Check investment option | Low — one-off review | Very high — compounding over decades |
| Personal contributions + deduction | Medium — annual tax lodgement | High — same as salary sacrifice |
| Catch-up contributions | Medium — requires planning | High — for those with gaps |
| Review insurance | Low — annual review | Medium — depends on current premiums |
Frequently Asked Questions
At what income level does salary sacrifice into super stop making sense? For most Australians (income $45,001–$250,000), salary sacrifice remains tax-effective because the marginal rate exceeds the 15% contributions tax rate. For incomes over approximately $250,000, Division 293 tax brings the effective super contributions tax rate to 30% — still potentially beneficial for those at 45% marginal rate, but less so.
Can I do all of these at once? Yes — most of these strategies work independently and can be combined. For example, you could switch to a lower-fee option, salary sacrifice $10,000 per year, and consolidate accounts in the same financial year. Just ensure you track total concessional contributions against the $30,000 cap.
What if my employer doesn’t offer salary sacrifice? If your employer doesn’t facilitate salary sacrifice, you can achieve the same tax result through personal deductible contributions — make a contribution from your bank account and claim a tax deduction. See strategy 5 above.
For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.