Couple signing up for Super-RewardsCouple signing up for Super-Rewards
Back to BLOG

Unlocking the benefits of superannuation with voluntary contributions

Pascale Helyar-MorayPascale Helyar-MorayPascale Helyar-Moray
Apr 24, 2023

Unlocking the benefits of superannuation with voluntary contributions

We’ve all heard of superannuation - the government-mandated retirement savings program allowing Australians to save money for retirement. But did you know that you can make voluntary contributions to your superannuation? By doing so, you can unlock a more secure and comfortable retirement. Let’s take a closer look at how extra contributions to your super can benefit you.

Benefits of making extra contributions

Making extra contributions to your superannuation is one of the best ways to maximise your retirement savings. It could result in larger savings when it comes time to retire and could have potential tax benefits. Additionally, many employers offer salary sacrifice arrangements that allow you to contribute part (or even all) of your pre-tax salary into your superannuation account. This means any money contributed before tax is taken out will help lower your taxable income and put more cash in your pocket throughout the year.

Extra contributions also unlock additional rewards from the government. For example, suppose you are eligible for the Government Co-Contribution scheme. In that case, any extra contribution made into your account before June 30th each year will qualify for co-contribution payments up to $500 from the government, depending on how much was contributed and your income.

Voluntary contributions offer many advantages beyond simply increasing total savings upon retirement. You are also investing more in the tax-effective superannuation environment, where investment earnings are taxed at a maximum of 15%. The compounded benefit of this concessional tax treatment can give you a higher balance in retirement and, therefore a higher retirement income.

The difference between concessional contributions and non-concessional

There are two types of contributions you (or others) can make into your super fund: concessional contributions and non-concessional contributions.

Concessional contributions are considered pre-tax contributions, designed to boost your super balance while also reducing your personal income tax. Concessional contributions include the superannuation guarantee that your employer pays into your super, including any salary sacrifice amounts and any personal contributions for which you claim a tax deduction.

Salary sacrifice contributions and personal contributions for which you claim a tax deduction can both be used to reduce your taxable income. With salary sacrificing, you arrange with your employer to reduce your pre-tax salary in exchange for increased contributions into your super fund. Note that only employees may be eligible to enter into a salary-sacrificing arrangement. However, whether you are an employee or self-employed, you can make personal contributions directly to your super fund from your after-tax income, e.g. from your bank account, up to your concessional contributions cap and claim a tax deduction, provided that you are eligible, and notify your super fund that you wish to claim a tax deduction and receive an acknowledgement back from them.

Non-concessional contributions are considered after-tax contributions, designed purely to increase your super balance. These voluntary personal contributions include those you make directly to your super fund from your after-tax income, e.g. from your bank account, which you do not claim a tax deduction for, and count towards your non-concessional contributions cap.

We will make your Super-Rewards payments as non-concessional contributions however, whether your Super-Rewards contributions are treated as concessional or non-concessional may depend on your personal circumstances so you will need to seek your own financial advice. You can also find more information here.

With careful planning and knowledge of all available options, anyone can use these opportunities and enjoy a more comfortable retirement – so why not start right now?

Super-Rewards make adding extra contributions to your superannuation easy. Our program provides Australians with a simple way to put more money aside for retirement without sacrificing other parts of their budget. With over 1000+ participating retailers, exclusive deals, and up to 15% cashback going straight into your nominated super fund account, you can easily make extra contributions towards your retirement.

You can grow your superannuation with Super-Rewards in 4 ways:

  1. Website –
  2. Mobile app – Android and iOS
  3. Instore – by linking your Australian eftpos, Visa or Mastercard credit or debit cards
  4. Super-Activator browser notifier – available on Chrome and Safari

Signing up for Super-Rewards is free, and there are no ongoing charges. You can still buy items on sale and earn Super-Rewards. If that brand has its own points system, you can still earn those too. So, it’s a win-win for all. Sign up today to get started on your SUPER future.