By Philippa Billings, Chief Advice Officer, Otivo
Deciding to add to your super is the easy part. The part that trips people up is that extra contributions come through two different doors, one before tax and one after, and they're taxed, capped and claimed in completely different ways. Choose the wrong door and you can miss a deduction or tip over a cap. Here's how voluntary contributions work, and what separates the two routes.
Extra super contributions are voluntary amounts you add on top of your employer's super guarantee. They come in two forms, concessional contributions from before-tax income and non-concessional contributions from after-tax income. As at July 2026, the concessional cap is $32,500 and the non-concessional cap is $130,000 for 2026-27, each set by the ATO.
What counts as an extra super contribution?
An extra contribution is any amount you add to your super beyond the compulsory super guarantee your employer pays. That covers salary you redirect before tax, money you put in from your own pocket after tax, and personal contributions you later claim a tax deduction for. The common thread is that they're voluntary, and the key distinction is whether they go in before or after tax, because that changes everything about how they're treated.
What's the difference between before-tax and after-tax contributions?
Before-tax contributions are called concessional contributions. They include salary sacrifice and personal contributions you claim a deduction for, and they're generally taxed at 15% going into the fund rather than your marginal rate. Claiming a deduction on a personal contribution has a paperwork step, a valid notice of intent must be lodged with your fund and acknowledged before the earlier of the day you lodge your tax return for that year or the end of the following financial year. After-tax contributions are called non-concessional contributions. They're made from money you've already paid tax on and aren't claimed as a deduction, so they aren't taxed again on the way in.
How much can you contribute each year?
Each door has its own cap. The concessional cap for 2026-27 is $32,500, and it's a single combined limit covering your employer's super guarantee, any salary sacrifice, and any personal deductible contributions together. The non-concessional cap is $130,000 for 2026-27, and eligible people under 75 may bring forward up to three years at once, allowing as much as $390,000 in a single year depending on their total super balance. If you haven't used your full concessional cap in recent years, carry-forward rules may let you contribute more, subject to eligibility. For very high earners, Division 293 adds an extra 15% on concessional contributions above a $250,000 combined-income threshold, taking the tax on those contributions to 30%, though they remain concessionally taxed.
What happens if you contribute too much?
Going over a cap is fixable but costs you. Excess concessional contributions are added to your assessable income and taxed at your marginal rate, with a 15% offset for the tax the fund already paid, plus an excess concessional contributions charge, and you can elect to release up to 85% of the excess from your fund. Excess non-concessional contributions are treated differently. You can elect to withdraw them along with associated earnings, and if you don't, the excess can be taxed at the top rate of 47%. The two systems don't share a penalty, so it pays to track each cap separately.
Who tends to make extra contributions?
There's no single profile, but some patterns are common. Someone like a 45-year-old on $110,000 with the mortgage under control might add before-tax contributions for the tax efficiency. A person who's just received an inheritance might use the non-concessional cap to move a lump sum into super. Whether extra contributions suit any individual depends on their income, expenses, timeframe and how comfortable they are locking money away until retirement.
Frequently asked questions
Can I add money to my super whenever I want?
Generally yes, subject to the annual caps and your eligibility to contribute, which for most people continues until age 75. The type of contribution and the cap it counts towards are what matter most.
Do I get a tax deduction for extra contributions?
Only for personal contributions you claim as concessional, and only if you lodge a valid notice of intent with your fund and it's acknowledged. Non-concessional contributions aren't deductible, since they're made from money you've already paid tax on.
What's the difference between salary sacrifice and personal contributions?
Salary sacrifice is an arrangement with your employer to redirect before-tax pay into super. Personal contributions are made from your own money, and you can choose whether to claim a deduction on them, which determines whether they count as concessional or non-concessional.
Where to from here
Adding to your super is one of the clearest levers you have, but the right amount and the right door depend on your situation. Otivo, a licensed Australian financial advice platform holding AFSL and Australian Credit Licence No. 485665, offers a tax-deductible personal contributions module that checks your eligibility and whether claiming a deduction makes sense, based on your income, age and monthly surplus. It turns the general rules into a clear answer for you.
Sources
- Australian Taxation Office — concessional and non-concessional contributions caps, notice of intent, Division 293 and excess contributions — ato.gov.au
- ASIC MoneySmart — super contributions — moneysmart.gov.au
Disclaimer
The information in this communication is current as at July 2026 and has been prepared by Otivo Pty Ltd ABN 47 602 457 732, AFSL and Australian Credit Licence No. 485665. This content is general information only and has been prepared without taking into account your objectives, financial situation or needs. It is not personal financial or taxation advice and should not be relied on as such. Before acting on any information, you should consider its appropriateness having regard to your personal circumstances. This material must not be reproduced in whole or in part, or posted on any social media platform, without the prior written consent of Otivo Pty Ltd.