Most Australians hit their late 50s and suddenly realise their super balance isn’t quite where they hoped it would be. The good news? The final 5 to 10 years before retirement are actually when you have the most powerful tools available to boost it. If you’re wondering how to increase your super before retirement, this guide walks through the strategies that make the biggest difference.
The key ones: salary sacrificing before-tax income into super (taxed at just 15% instead of your marginal rate), using the carry-forward rule to top up unused cap space from previous years, making after-tax contributions if you have savings or a lump sum, and using the downsizer contribution if you’re 55 or older and selling your home.
Let’s break each one down.
Salary Sacrifice: The Most Consistent Way to Boost Super
Salary sacrifice is when you ask your employer to redirect some of your pre-tax income straight into super, before it gets taxed at your marginal rate.
Here’s why it works so well. If you’re earning $90,000 and your marginal tax rate is 34.5% (including Medicare levy), every dollar you salary sacrifice into super is only taxed at 15%. That’s a 19.5% saving on every dollar you shift. On $10,000 of salary sacrifice, that’s roughly $1,950 in tax you keep.
For the 2025-26 financial year, the concessional contributions cap (which includes employer SG contributions plus salary sacrifice plus any personal deductible contributions) is $30,000 per year. So if your employer is putting in $12,000 as the 12% SG rate, you have up to $18,000 of room to salary sacrifice on top.
The process is straightforward. Talk to your payroll team or HR, submit a salary sacrifice agreement, and the money flows directly to your super fund each pay cycle.
The Carry-Forward Rule: The Most Underused Strategy We See
This one surprises almost every client we sit down with. If you haven’t maxed out your concessional contributions cap in previous years, you may be able to carry forward those unused amounts and dump them all in a single year.
The rules: you’re eligible if your total super balance was under $500,000 at 30 June of the previous financial year, and you can carry forward unused cap amounts from up to the past five financial years.
To understand the numbers, consider someone who has had employer SG contributions of $12,000 per year for the past five years, against a cap that was $27,500 in earlier years and $30,000 now. That’s roughly $75,000 to $90,000 in unused cap space sitting there. They could contribute a significant portion of that in a single year, all taxed at just 15% inside super.
You can check your available carry-forward amounts through myGov linked to the ATO. It takes about two minutes.
Scott and Phil covered this in detail on the podcast when talking about catch-up contributions and how they interact with capital gains timing. Episode 10, “How the Age Pension Really Works,” walks through a real case where using catch-up contributions dropped a client’s capital gains tax bill from $98,000 to $11,000 in the year they sold an investment property. Worth a watch.
After-Tax (Non-Concessional) Contributions: If You Have a Lump Sum
If you receive an inheritance, sell an investment, or have savings sitting in a low-interest account, contributing it to super as a non-concessional (after-tax) contribution is worth considering.
There’s no tax deduction on these contributions because you’ve already paid tax on the money. But once it’s inside super, it grows in a low-tax environment (15% on earnings in accumulation phase, 0% once you move to pension phase).
For 2025-26, the non-concessional cap is $120,000 per year. If your total super balance is under $1.76 million, you may be able to use the bring-forward rule and contribute up to $360,000 across three years in one go.
One thing to be aware of: if your total super balance is already at or above $2 million, you can’t make non-concessional contributions at all in 2025-26.
These figures are set by the Australian Government and are typically updated annually. Current as at May 2026. Source: ATO
Personal Deductible Contributions: Useful for the Self-Employed and Bonus Earners
If you’re self-employed, have irregular income, or receive a one-off bonus or capital gain, you can make a personal contribution to super and then claim it as a tax deduction.
It works the same way as salary sacrifice in terms of tax treatment: the contribution goes in taxed at 15% inside super, and you get a deduction that reduces your taxable income for the year. The total sits within your $30,000 concessional cap for the year (combined with any employer contributions).
To do it, you need to submit a “Notice of Intent to Claim a Deduction” form to your super fund before lodging your tax return. Don’t skip this step. If you forget, the contribution stays as a non-concessional contribution and you lose the deduction.
Downsizer Contributions: A Major Boost for Homeowners 55+
If you’re 55 or older and you sell a home you’ve owned for at least 10 years, you can contribute up to $300,000 per person ($600,000 for a couple) from the sale proceeds into super. This sits entirely outside the normal contribution caps.
The catch that Phil always flags: the family home is exempt from the Age Pension assets test, but once you sell it and the cash is sitting in super or a bank account, it becomes assessable. Depending on your balance and the value of your home, this could affect your Age Pension entitlement.
Phil covered the traps in detail in Episode 2 of the podcast, “Downsizer Contributions: The Hidden Traps You Must Know.” If you’re considering this one, listen first or talk to an adviser before you sign anything.
The 90-day deadline after settlement to make the contribution is real and does sneak up. “You’d be surprised that 90 days does go pretty quick,” as Scott put it.
Review Your Fund’s Performance and Fees
This isn’t a contribution strategy, but it can have just as much impact on your balance over 5 to 10 years.
A difference of 1% in annual fees on a $400,000 balance is $4,000 per year. Over 10 years, compounded, that’s well over $50,000 in lost returns. And if your fund is consistently underperforming a comparable option, the gap widens further.
Phil made the point in Episode 22 that most so-called “balanced” funds are actually closer to growth funds in practice, with the “balanced” label carrying less meaning than it used to. If you haven’t looked at what you’re actually invested in and what you’re paying, now is the time.
The ATO’s YourSuper comparison tool at moneysmart.gov.au lets you compare funds side by side on fees and returns.
Consolidate Multiple Super Accounts
If you’ve changed jobs a few times over the years, there’s a decent chance you have multiple super accounts, each charging their own admin fees and potentially insurance premiums.
Consolidating into one fund stops the fee drain. Use myGov to find any lost or multiple accounts, then roll them into your preferred fund. One thing to check before you consolidate: whether any existing accounts carry insurance cover (income protection, TPD, life insurance) that you’d lose by rolling it over. It’s worth a quick call to the fund before hitting merge.
Government Co-Contribution: Free Money for Lower Earners
If your income is below certain thresholds, the government will top up personal after-tax contributions with a co-contribution of up to $500.
For 2025-26, the maximum co-contribution applies if your income is below $45,400. The benefit tapers out entirely at $60,400. To get the full $500, you contribute $1,000 from after-tax money. It’s not going to transform a balance, but it’s genuinely free money if you’re eligible.
Current as at May 2026. Source: ATO
Spouse Contributions: Balance Super Between Partners
If your partner earns a low income or has taken time out of the workforce, contributing to their super and claiming a tax offset is worth looking at. You can claim a tax offset of up to $540 if your spouse’s income is below $37,000, and some benefit applies up to $40,000.
Beyond the immediate tax saving, evening up super balances between partners is good retirement planning. A more balanced split can mean more flexibility in how you draw down in retirement and how your income interacts with the Age Pension assets test.
Want to See How Your Numbers Stack Up?
If any of these strategies are starting to feel relevant, it’s worth running your own numbers before the end of the financial year. Our free Wealthlab super calculator gives you a quick snapshot of where your balance sits and how much difference extra contributions could make.
FAQs
What’s the concessional contributions cap for 2025-26?
The concessional contributions cap is $30,000 per year for 2025-26. This includes employer SG contributions, salary sacrifice, and any personal contributions you claim as a tax deduction. If your total super balance was under $500,000 at 30 June 2025, you may also be able to carry forward unused amounts from up to the past five financial years, potentially allowing you to contribute well above $30,000 in a single year. Current as at May 2026. Source: ATO.
What is the carry-forward rule for super contributions?
The carry-forward rule lets you use unused concessional contribution cap amounts from up to five previous financial years, provided your total super balance was below $500,000 at 30 June of the previous year. If you’ve had employer contributions of around $12,000 to $15,000 per year against a cap that was $27,500 to $30,000, you may have accumulated significant unused space you can use in a single year, all taxed at 15% inside super. Check your available amounts through myGov linked to the ATO.
Is it worth boosting super if I’m only a few years from retirement?
Generally yes, even with a short runway. Extra contributions reduce your taxable income now while the money goes into a low-tax environment. Combined with the carry-forward rule, it’s possible to add meaningfully to your balance even in the final three to five working years. The right approach depends on your income, tax position, and how much room you have under the caps. An adviser can help you work out what’s worth prioritising.
Can I make super contributions after age 67?
Yes. The work test was removed for most contribution types from 1 July 2022. If you’re under 75, you can generally make both concessional and non-concessional contributions without needing to satisfy a work test. Downsizer contributions have no age limit and no work test requirement at all, meaning Australians over 75 can still make a downsizer contribution from the sale of a qualifying home.
What are the risks of the downsizer contribution?
The main one Phil flags regularly is the Age Pension impact. Your family home is exempt from the pension assets test, but cash or super from the sale is assessable. Depending on your situation, downsizing and contributing the proceeds to super could reduce or eliminate an Age Pension entitlement you’d otherwise have had. The numbers need to be run before you make a decision. There’s also a 90-day window after settlement to make the contribution, which is firm.
Should I switch to a conservative investment option before retirement?
It depends on your timeline and how you plan to draw down. If you’re more than five years from retiring, a growth or balanced option is likely still appropriate because your balance has time to recover from a market dip. Within one to two years of retirement, many people shift some of their balance to defensive assets to avoid a poorly timed downturn wiping value right before they need to draw on it. Scott covered the real cost of being too conservative in Episode 1 of the podcast, “Why Playing It Safe in Retirement Can Cost You More.” It’s a good listen if you’re thinking about investment mix right now.
How does salary sacrifice affect the Age Pension?
Salary sacrifice reduces your taxable income, which can be helpful for the Age Pension income test. Super contributions going in are generally not counted as income for Centrelink purposes while you’re still working. However, once the money is in super it forms part of your assessable assets once you reach pension age. The net effect on your Age Pension eligibility depends on your overall balance and when you plan to apply. This is worth running through with an adviser before making significant changes if Age Pension entitlement matters to your plan.
Ready to Build a Strategy Around Your Situation?
These strategies work best when they’re combined and timed well. Salary sacrifice plus carry-forward contributions plus a fund review in the right financial year can add significantly more than any single approach on its own.
If you’d like to talk through how these strategies might apply to your own situation, book a free chat with the Wealthlab team. No jargon, no pressure.
Not sure where to start? Take our free retirement quiz for a quick snapshot of where you stand.
You can also read our guide on what the average super balance looks like at 60 to see how your balance compares nationally, or our step-by-step guide on superannuation strategies to understand how your contributions fit into your broader retirement plan.