1. Make every contribution count

Even if you’re still paying down your home loan, there are ways to boost your super tax-effectively. Did you know, you can contribute up to $30,000 a year in before-tax (concessional) contributions, this includes employer super guarantee payments and any salary sacrifice you choose to make. You’ll generally pay only 15% tax on these contributions, which may be lower than your marginal tax rate.

If you haven’t used your full concessional cap in the past five years, you might also be eligible to carry forward unused amounts, a smart way to make a larger contribution in a good year, especially after a bonus or sale of an asset.

2. Top up with after-tax contributions

You can also make after-tax (non-concessional) contributions of up to $120,000 per year (or $360,000 under the bring-forward rule, depending on your total super balance). These contributions aren’t taxed going in and grow tax-free inside super, helping your savings compound faster over time.

There are annual contribution limits on how much before and after-tax contributions you can make to your super. If you exceed the contribution caps, you’ll generally pay extra tax. Staying within these caps helps you grow your super efficiently.

3. Consider a downsizer contribution

If you’re 55 or older and have owned your home for 10 years or more, you could contribute up to $300,000 from the sale proceeds directly into super through a downsizer contribution. This option isn’t counted towards your annual contribution caps, making it a powerful way to boost your balance, but it’s important to check how it may affect any future Age Pension eligibility.

4. Should you pay down debt or grow your super?

If your mortgage interest rate is higher than what you expect your super to earn, it can make sense to prioritise debt reduction. But super’s tax advantages mean that, over time, it can still deliver strong long-term growth. The key is finding the right balance between paying off debt and investing for your future.

“The best approach often isn’t all-or-nothing,” says Dan Bridgland, Manager Financial Advice at CareSuper. “It’s about making informed choices, reducing debt where it makes sense, while still keeping your super growing and working hard for the future you want.”

We can help you 

No matter where you’re at, a conversation with a financial planner can help you decide which strategy works best for your goals. After all, the smartest move is one that keeps both your finances and your future in balance. Book a call back from one of our super experts today.