Growing your super 

It’s a simple principle – every dollar your employer contributes grows your superannuation (super) balance. But you can make additional contributions too. And the more you add, the more money you’ll have in retirement.  

Super builds wealth 

Super is one of the best ways to build personal wealth for three reasons: 
 
1. Your super balance grows organically, with automatic contributions. 

2. You can’t access super until retirement, giving your savings time to snowball.  

3. Super’s low tax environment means you keep more of your earnings. 

Because super is taxed at 15% (compared with the average national tax rate of 25%¹), you’ll have more money to grow through compound returns. So much so, up to three quarters of your super balance at retirement can come from these earnings.² 

More ways to contribute to your super  

There are many ways to add to your super. And the first method is guaranteed.  
 
1. Super Guarantee  
The Superannuation Guarantee is the minimum amount your employer is legally required to pay into super on top of your wages. As at July 2025 this is 12% of your wages.

2. Government co-contribution  
If you’re a low or middle-income worker who makes personal after-tax contributions (also known as non-concessional contributions), the Federal Government may also make a co-contribution up to $500, applied automatically. 

3. Before-tax contribution 
Average or higher-income workers who make before-tax (concessional) contributions, also called salary sacrificing, can take advantage of tax benefits. This is an agreement with your employer to transfer more of your regular income into super, taxed at just 15%. 

4. One-off contribution  
If you receive a windfall like an inheritance, work bonus or tax refund, you can add this to your super as a lump sum to supercharge your savings. 

5. Spouse contribution 
You can top up your partner’s super to help build their retirement wealth, and potentially claim a tax offset. Spouse contributions are especially beneficial for women who typically have lower balances due to time out of the workforce with caring responsibilities.  

6. Downsizer contribution 
You may be able to contribute up to $300,000 of the proceeds from the sale of your home into your super. Downsizer contributions can be an incentive for homeowners nearing retirement to add a tax-free boost to their balance. 

Extra contributions are capped 

There’s a limit to how much you can contribute to super before you’ll pay extra tax or charges. 

Before-tax (concessional) contributions 
The 2024-25 caps for before-tax contributions – like employer super payments, salary sacrifice and personal contributions you claim as a tax deduction – are $30,000 a year. 

 
After-tax (non-concessional) contributions 
The 2024-25 caps for after tax-contributions – including spouse contributions and voluntary payments that aren’t claimed as a tax deduction – are $120,000 a year. 

How super funds grow your money 

The principle of universality is hard at work here.  

Because all Australian workers receive super, funds pool our money together to collectively invest in assets with a long-term view. 

With our wealth shared across investments – like infrastructure, commercial property and companies listed on the stock market – we all share in the growth of Australian businesses, and their potential gains with bigger super balances at retirement. 

Contributions to Australian super funds in 2024-25 are projected to reach $141 billion³  

Choose an investment strategy to build your balance 

How your fund invests can also determine how your super grows. 
 
Your fund’s investment options are likely laid out as pie charts on their website. This will show their different investment strategies – such as balanced, high growth and sustainable – and the assets they invest in.   
 
You can choose a higher return option, which also comes with higher risk by investing in assets like shares. A conservative option which invests more heavily in cash and bonds. And you can avoid funds that invest in certain industries like tobacco, fossil fuels and gambling. 

All options spread investments over a diverse range of sectors and geographies, so if one underperforms, your portfolio as a whole is less likely to suffer. And if you don’t nominate a fund with your employer, they’ll add your super to a default MySuper product – a low-cost, low-risk option with a balanced return. 

Consistent performance grows super 

Choosing the right fund can make a world of difference to your super balance at retirement. 

There are many types of super funds including profit-to-member funds that return profits to members, and retail funds that return profits to shareholders. While a small difference in fees can also make a huge difference to your retirement savings.
 
Use the ATO’s comparison tool to see how your fund is performing. 

With the world’s fastest growing super system⁴, and many ways to maximise the savings, super is a policy success story that’s growing our country and the wealth of all Australians. 

FAQs

• Isn’t super paid by my employer? 
  Yes. While employers are required to pay a minimum 11.5% super on top of your wages, you can help maximise your retirement savings by adding personal contributions.
• Is there a limit to how much extra I can add to my super?
  Yes. The amount you can contribute to your super is capped. The cap is $30,000 a year for before-tax contributions, and $120,000 a year for after tax-contributions. If you contribute more, you may have to pay extra tax. 
• How do super funds grow my money?
  Because all Australian workers receive super, funds are able to pool our money together to invest in a range of assets that were previously only in reach of the wealthy. With the power of our collective money invested long-term, funds help Australians build bigger super balances for retirement while minimising investment risks. 
• What choices do I have in my super fund?
  Super funds give you control over your investments. You can compare funds to choose a higher performing fund with low fees, and choose investment options in line with your risk appetite, and your values.

References:
1. SMC analysis 
2. Estimate based on Super Members Council modelling. Assumes 44 continuous years’ full time working on median income, employer contributions to super, and retirement at age 65.  
3. SMC analysis 
4. SMC analysis 

The information set out on this website is of a general nature only and should not be taken as a complete or definitive statement about superannuation. You should not make decisions concerning your superannuation arrangements solely based on the information contained on this website which has been prepared without taking into account your objectives, financial situation or needs.