Extra Super Contributions Calculator
See how extra contributions boost your retirement balance and how much tax you save in 2025–26.
Concessional cap is $30,000 for 2025–26. Tax saving applies to concessional contributions only (taxed at 15% in super vs marginal rate). Projected at selected return rate.
How Extra Super Contributions Work
Making extra contributions to your superannuation above the compulsory employer Super Guarantee (SG) amount is one of the most effective long-term wealth-building strategies available to Australians. The combination of concessional tax treatment, tax-free investment earnings in the accumulation phase, and the power of compounding over decades means that even modest additional contributions made early can translate into substantially larger retirement balances.
Concessional vs Non-Concessional Contributions
Concessional (pre-tax) contributions include your employer's SG contributions, any salary sacrifice amounts, and personal contributions for which you claim a tax deduction. They are taxed at just 15% inside the super fund, making them highly attractive for anyone whose marginal income tax rate exceeds 19%. The concessional cap for 2025–26 is $30,000 per year — the SG rate has increased to 12% from 1 July 2025, which means the effective salary sacrifice room is $30,000 minus your SG amount.
Non-concessional contributions are made from after-tax income and are not taxed again inside the fund (other than on investment earnings). The non-concessional cap is $120,000 per year, or up to $360,000 over three years under the bring-forward rule for those aged under 75. Non-concessional contributions suit people who have already maximised their concessional cap, have a tax-free windfall (inheritance, property sale proceeds), or whose marginal rate is too low to make concessional contributions attractive.
The $30,000 Concessional Cap for 2025–26
The concessional contributions cap of $30,000 applies across all sources: employer SG, salary sacrifice, and personal deductible contributions. For a person earning $100,000, the SG of 12% contributes $12,000, leaving $18,000 of concessional cap room available for salary sacrifice or personal deductible contributions. Contributions above the cap are included in your assessable income and taxed at your marginal rate (with a 15% tax offset to avoid double taxation), so it is important not to exceed the cap unintentionally.
The Tax Benefit of Salary Sacrifice
When you make concessional contributions, the key tax saving is the difference between your marginal income tax rate and the 15% contributions tax. For example, an individual on the 32.5% marginal rate who salary sacrifices $10,000 saves $3,250 in income tax and pays $1,500 in contributions tax — a net tax saving of $1,750. For someone on the 45% marginal rate, the same contribution yields a $3,000 net saving. This money stays invested in your super fund, compounding over time rather than being lost to tax.
How Compounding Amplifies Early Contributions
The time value of compounding is the strongest argument for making extra super contributions as early as possible. An additional $10,000 contributed at age 35 invested at 7% per annum becomes approximately $53,000 by age 67 — more than five times the original contribution. The same $10,000 contributed at age 55 grows to only about $19,000. This demonstrates why the earlier you act, the greater the impact of each dollar contributed.
Catch-Up Concessional Contributions
If your total superannuation balance was below $500,000 at 30 June of the previous financial year, you can carry forward unused concessional cap space from the previous five years and use it in the current year. This is particularly valuable for people returning from career breaks, those who had periods of lower income, or anyone who now has the capacity to make larger contributions. The ATO tracks your available carry-forward amounts and they are visible in your myGov account under ATO online services.
Division 293 Tax for High Earners
If your income (including concessional contributions) exceeds $250,000 in a financial year, an additional 15% Division 293 tax applies to your concessional contributions, bringing the effective contributions tax rate to 30%. Even at 30%, concessional contributions remain more tax-effective than the 45% top marginal rate, so they are still worth making. The ATO assesses Division 293 after year-end and sends you an assessment. You can elect to have the tax paid from your super fund or pay it personally.