Super strategies to help you prepare for the end of financial year

The end of the 2022-23 Financial Year is fast approaching and there is only a limited amount of working days left to take advantage of end of financial year strategies and concessions available to you. The following super strategies could help maximise your retirement savings.


EOFY super strategies

Salary sacrifice

Personal tax-deductible contributions

Most employees receive super guarantee (SG) contributions from their employer of at least 10.5% of their salary.¹ Adding to these contributions directly from your gross (beforetax) salary can be an easy and tax-effective way to top up your super. This is called salary sacrifice, and it can be a great way to help you save for the lifestyle you want in retirement.

Make sure you check with your employer to see whether salary sacrifice is available.

Some of the benefits of salary sacrifice are:

  • It’s simple, automatic and consistent.
  • You can reduce your taxable income.
  • Salary sacrifice contributions are paid from your before-tax salary and are generally taxed at 15% instead of your marginal rate (plus Medicare levy).² Note: there are limits to the amount you can salary sacrifice without incurring extra tax.
  • The difference in taxation may mean more money is available to invest in super than if you were to receive the money as after-tax income and then invest it.
  • Future earnings on contributions made to super are taxed at a maximum of 15%, whereas any earnings on investments outside of super may be taxed at a higher rate, depending on your taxable income.
Anyone who is eligible to contribute is also eligible to claim a personal tax deduction for their contributions.³ Therefore, if your employer doesn’t offer salary sacrifice, you are selfemployed or only derive income from passive investment (such as a share portfolio), you may be able to make a personal tax-deductible contribution to reduce your taxable income.

Personal deductible contributions count towards your concessional contributions (CC) cap, which is $27,500 for the 2022–23 financial year.

You may be able to contribute even more if you did not fully utilise your CC cap in a year (from 1 July 2018 onwards) and are eligible to carry those unused amounts forward to use in a later year. To be eligible your total super balance must have been less than $500,000 at the end of the prior financial year.

Making personal tax-deductible contributions to your super may prove timely if you have made a considerable capital gain from the sale of a property or shares, as your deductible contribution may help to offset your assessable capital gain and could also reduce your marginal tax rate.

For this strategy to be effective, you need to have sufficient taxable income to offset with the personal tax-deductible contribution. Talk to your financial adviser about the best way to implement this strategy.




Split super contributions with your spouse

Spouse contribution tax offsets

Up to 85% of your taxable contributions such as SG, salary sacrifice and personal tax deductible contributions can be transferred to your spouse’s super. You can do this every year, once the financial year has ended.

If the receiving spouse is over preservation age but under age 65 at the time of the split request, they must declare they aren’t retired. Splits cannot take place once the receiving spouse turns 65.

Here’s how splitting your super can help:

  • Transferring contributions to an older spouse could enable them to access more retirement money earlier.
  • Transferring money to a younger spouse could enable the older spouse to receive more Age Pension by delaying the date their super becomes an assessable asset for Centrelink purposes.
  • The transferred amount doesn’t count towards the receiving spouse’s contributions cap.5
  • Transferring contributions to a spouse may allow a couple to equalise their balances and maximise the combined amount they can use to commence tax-free pensions, as each of them is limited by a transfer balance cap (currently $1.7m but will be indexed to $1.9m on 1 July 2023).


Super splitting is not offered by all funds, so you will need to check if your fund offers this feature.

This strategy may be available if you make after-tax contributions directly to your spouse’s super account – these are known as eligible spouse contributions.

As well as increasing your spouse’s super balance, another advantage of making a spouse contribution is that you may be eligible for a tax offset, which reduces the tax you pay on your own taxable income.

If your spouse’s assessable income, reportable employer super contributions and reportable fringe benefits are under $37,000 p.a., you may receive an 18% tax offset up to the first $3,000 you contribute on their behalf (i.e. there is a maximum tax offset of $540 p.a.). The offset operates on a sliding scale and phases out to zero once your spouse’s income exceeds $40,000 p.a.

You can open a super account in your spouse’s name and make contributions from your after tax pay, or make the contributions to your spouse’s existing super account.


A word on contribution caps

When considering any super strategy, it’s important to assess how much you are contributing to super in any one financial year. The government has set annual limits known as contributions caps.

The contributions caps for 2022–23 are:

  • $27,500 for before-tax (concessional) contributions, regardless of age. This cap may be higher if you have any unused concessional contributions cap amounts left over from previous financial years (since 1 July 2018), and your total super balance was under $500,000 on 30th June 2022.
  • $110,0006 for after-tax (non-concessional) contributions, or up to $330,000 under the bring-forward rule if you are under 75 at any time during the financial year you make the contribution.
  • Your non-concessional cap will also depend on your total superannuation balance, which you can find through ATO online services accessible via MyGov.


NOTE: From 2022-23 onwards, new rules allow people between age 67 and 75 to make non-concessional contributions under the bring-forward rule without having to meet the work test. You just need to be under age 75. This is a great opportunity to increase super savings before or even during retirement. However, if you want to claim a tax deduction for that contribution you will still need to meet the work test. 


Speak to your Pinnacle Advisor if you have any questions or if you would like to simply check that everything is on track! 


1 The SG rate is 10.5% until end of financial year 2022–23. After that it will increase gradually each financial year by 0.5% until it reaches 12% on 1 July 2025.

2 Individuals whose combined income and non-excessive concessional contributions are greater than $250,000 pay an additional 15% Div293 tax on some or all non-excessive concessional contributions. Salary sacrifice contributions are subject to the concessional contributions cap which includes the basic concessional contributions cap of $27,500 in the 2022-23 financial year and any carry forward unused concessional contributions amount that an individual is eligible to use.

3 Note, from 1 July 2022 people generally aged between 67 and 74 will need to satisfy a work test or a work test exemption to be eligible to claim a tax  deduction for their personal superannuation contributions.

4 Total income equals assessable income plus reportable fringe benefits plus reportable employer super contributions, less business deduction (other than  for work related expenses or personal super contributions). Thresholds are for the 2022–23 financial year.

5 The original contribution made does count towards the concessional contributions cap.

6 In the 2022–23 financial year, the basic non-concessional contribution cap is reduced to nil where your total super balance is $1.7 million or more. In  addition, if you trigger the bring-forward rule in 2022–23, the maximum cap will be reduced if your total super balance is $1.48 million or more on 30June 2022. In next financial year (ie 2023-24), the basic non-concessional contribution cap is reduced to nil where your total super balance is $1.9 million or more and if you trigger the bring-forward rule in 2023-24, the maximum bring-forward cap of $330,000 will be reduced if your total super balance is $1.68 million or more on 30 June 2023.