If you're in Australia's top tax bracket and earning above $190,000 there are superannuation contribution strategies worth understanding before 30 June. Jeff Hanna walks through the key options.
If you’re earning well, there’s a good chance you’ve already set up a contribution strategy, such as salary sacrificing into superannuation, and then left it running in the background. It’s efficient and consistent, but without regular review, it could quietly become a missed opportunity.
For high-income earners, it’s worth knowing there may be additional options available beyond the default setup, depending on your circumstances. The closer you get to EOFY, the more options are worth reviewing, and the more quickly some of them close. With four weeks to go before 30 June, we spoke with Jeff Hanna, Executive Financial Adviser at Viridian Advisory in Melbourne.
What “high earner” actually means
The super rules don’t use a single income threshold. Different rules kick in at different points. $190,001 for the top marginal tax rate of 45%, $250,000 for Division 293 tax, and various total super balance thresholds that affect what contributions you can make at all.
- $190,001: top marginal rate of 45% (47% incl. Medicare levy)
- $250,000: Division 293 tax threshold
- $500,000 Total Super Balance: limit for carry-forward eligibility
The concessional cap: your starting point
Concessional contributions: employer SG, salary sacrifice, and personal deductible contributions are taxed at 15% inside the fund, considerably lower than the 47% top marginal rate.
For 2025–26, the cap is $30,000 per year, including employer SG.
With the SG rate now at 12%, an employer contributing on a $250,000 salary is already paying exactly $30,000, which is the full cap. There’s no room left for additional concessional contributions at that point, unless you understand how the maximum superannuation contribution base (MSCB) works.
Carry-forward contributions: the catch-up rule
The carry-forward rule lets you use the unused concessional cap from the previous five financial years, but only if your total super balance was under $500,000 on 30 June of the previous year. Introduced in 2019–20, unused amounts from 2020–21 expire at the end of 2025–26 — that is, 30 June 2026. If you have an unused cap from that year and haven’t acted, time is genuinely running out.
If you’ve been on a lower income, took parental leave, worked part-time, or simply didn’t maximise contributions, you could have accumulated tens of thousands in unused cap. People often explore this after a higher-than-usual income year; a large bonus or a capital gain, though whether it makes sense depends on individual circumstances.
Division 293 tax: what it means for your strategy
Concessional contributions are taxed at 15% inside super for most people. But if your combined income and concessional contributions exceed $250,000, you’ll pay an additional 15% on the portion above that threshold. The practical effect: contributions taxed at up to 30% rather than 15%, which is still considerably below the 47% top marginal rate. Carry-forward contributions also count toward the Division 293 assessment.
Non-concessional contributions
Non-concessional contributions (NCCs) are after-tax money you’ve already paid income tax on. They’re not taxed again on entering super, and earnings inside the fund are taxed at a maximum of 15%. The NCC cap for 2025–26 is $120,000. If your TSB was under $1.76 million at 30 June 2025, you may be able to bring forward up to three years of caps contributing up to $360,000 in a single year.
A note for those approaching $3 million: Division 296 — a new additional tax on super earnings for balances above $3 million, which received Royal Assent in March 2026 and takes effect from 1 July 2026. For anyone near that threshold, additional NCCs this year could have implications. This is covered in detail in Viridian’s article on the $3 million super tax – read here.
Spouse contributions: often overlooked
You can contribute to your spouse’s super and claim a tax offset of up to $540, provided their income is under $40,000. The full offset applies at $37,000 or less and it reduces gradually and phases out at $40,000. Another relevant key note for many high-income couples is contribution splitting: splitting up to 85% of your previous year’s concessional contributions into your spouse’s account. It doesn’t reduce your tax bill, but it can equalise balances between partners, which may matter for transfer balance cap and estate planning purposes.
The four-week window before 30 June
Your fund must receive contributions by 30 June to count. Timing matters, particularly for personal contributions and salary sacrifice, which typically require a notice period before changes can take effect. Some questions worth exploring with your adviser:
The bottom line
Super remains one of the most tax-effective structures available to Australian investors. For those in the top tax bracket, that advantage is worth understanding, even accounting for Division 293 — though how it applies will differ from person to person. Whether it’s your carry-forward position, non-concessional options, or how super is structured between you and your partner, there are questions worth asking before the financial year closes.
Frequently asked questions:
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- Can I make concessional contributions if my employer already contributes the full $30,000 SG?
Generally not without exceeding the cap. However, if you earn above the maximum super contribution base ($250,000 for 2025–26), your employer’s SG obligation may be capped below $30,000, leaving room to top up. Check your payslips and confirm with your employer or adviser. - Will I definitely pay Division 293 tax if I’m in the top tax bracket?
Not necessarily. It applies when income plus concessional contributions exceeds $250,000. If you earn $190,000 and your employer contributes $22,800 in SG, your combined amount is $212,800 — below the threshold. It typically applies to those earning above roughly $220,000, depending on contribution level. - When do my unused carry-forward concessional contributions expire?
Unused amounts are available for five financial years and then expire. Amounts from 2020–21 expire at the end of 2025–26 — 30 June 2026. Check your balance in myGov under Super > Information. - Can my spouse receive super contributions from me even if they don’t work?
Yes, as long as they are under 75. You can claim a tax offset of up to $540 — the full amount applies if their income is $37,000 or less, reducing gradually and phasing out at $40,000. Eligibility conditions apply. Confirm with your adviser or the ATO. - What’s the deadline for making a contribution count in 2025–26?
Your fund must receive the contribution by 30 June 2026. Transfers lodged in the final days of June can be delayed, so always contribute several business days (allow around 5 days). For a personal deductible contribution, ensure the Notice of Intent reaches your fund before you lodge your tax return.
- Can I make concessional contributions if my employer already contributes the full $30,000 SG?
About the Author
Jeff Hanna
Executive Advisor, Viridian Advisory – Melbourne, VIC.
Jeff began his career as an accountant, became a CPA, and spent years in private banking at ANZ Private Bank, Deloitte, and Westpac Private Bank. Advising high-income earners and high-net-worth families isn’t a niche he occasionally visits — it’s the work he’s built his entire career around. He believes the right advice isn’t about complexity for its own sake; it’s about making sure the structures you have are working as hard as you are.
