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<\/p>\nThe power of regular voluntary super contributions<\/p>\n
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As the end of the financial year approaches, it\u2019s the perfect time to consider giving your super a boost.\u00a0<\/p>\n
New analysis from Vanguard shows that small, consistent contributions can make a big difference to your retirement savings and even reduce your tax bill.<\/p>\n
According to Vanguard\u2019s research, a 30-year-old who contributes just $1,000 extra annually to their super for 15 years could be nearly $80,000 better off by the time they retire at age 67.1<\/sup>\u00a0That works out to just under $20 per week.<\/p>\n Even a single $1,000 contribution at age 30 could grow to more than $8,400 by retirement, thanks to the power of compound interest.<\/p>\n \u201cThe key to boosting your retirement savings is the power of compound interest. So, the earlier you start, the better,\u201d says Renae Smith, Chief of Personal Investor at Vanguard Australia.<\/p>\n The following table highlights the potential growth in your retirement balance from making yearly additional contributions of $500 or $1,000 over 10 or 15 years, starting at age 30.<\/p>\n Additional Payment<\/p>\n (annually)<\/p>\n<\/th>\n \u00a0Boost to super by age 67<\/p>\n<\/th>\n<\/tr>\n Regular contributions for 10 years from age 30\u00a0<\/strong><\/p>\n<\/td>\n $500<\/p>\n<\/td>\n $30,473<\/p>\n<\/td>\n<\/tr>\n $1,000<\/p>\n<\/td>\n $60,947<\/p>\n<\/td>\n<\/tr>\n Regular contributions for 15 years from age 30<\/strong><\/p>\n<\/td>\n $500<\/p>\n<\/td>\n $39,928<\/p>\n<\/td>\n<\/tr>\n $1,000<\/p>\n<\/td>\n $79,856<\/p>\n \u00a0<\/p>\n You may be able to claim a tax deduction for a voluntary contribution, which can help reduce your overall tax bill, as these contributions are generally taxed at a lower rate than most Australians\u2019 marginal income tax rates.<\/p>\n For example, a 30-year-old earning $80,000 who makes a $1,000 voluntary super contribution and claims a tax deduction would receive a tax refund of $320 when they lodge their tax return. That means their net reduction in take-home pay is effectively $680.<\/p>\n After accounting for the 15% contributions tax, $850 would be added to their super. So, they\u2019ve effectively reduced their net take-home pay by $680 to boost their super by $850 \u2014 leaving them $170 better off overall, as the table below shows.<\/p>\n Voluntary contribution to super<\/strong><\/p>\n<\/td>\n $1,000<\/p>\n<\/td>\n<\/tr>\n Tax deduction claimed<\/strong><\/p>\n<\/td>\n $320\u00a0(assuming a 32% marginal tax rate, including Medicare levy, based on an income of $80,000)<\/p>\n<\/td>\n<\/tr>\n Reduction in take-home pay<\/strong><\/p>\n<\/td>\n $1,000 – $320 =\u00a0$680<\/strong><\/p>\n<\/td>\n<\/tr>\n Amount added to super (after 15% contributions tax)<\/strong><\/p>\n<\/td>\n $1,000 – $150 =\u00a0$850<\/strong><\/p>\n<\/td>\n<\/tr>\n Net benefit<\/strong><\/p>\n<\/td>\n Take-home pay is reduced by $680 to boost super by $850. The net benefit is\u00a0$170.<\/strong><\/p>\n \u00a0<\/p>\n To take advantage of these benefits this financial year, it\u2019s important to act early.<\/p>\n It\u2019s a good idea to aim to make any additional contributions at least a week before 30 June to allow for processing. For Vanguard Super members, the deadline to notify us of a voluntary concessional contribution is 23 June.<\/p>\n It\u2019s also important to remember to submit a \u2018Notice of intent\u2019 form to your super fund before lodging your tax return if you plan to claim a deduction.<\/p>\n Also, keep in mind the contributions cap. This financial year, Australians can contribute up to $30,000 to their super at the favourable tax rate of 15%. These are known as concessional contributions, and the cap includes any mandatory contributions from employers. If you exceed that, it could lead to paying extra tax.<\/p>\n If you\u2019d like to make regular additional contributions to your super, consider setting up a\u00a0salary sacrifice\u00a0arrangement with your employer. This way, a set portion of your before-tax salary is automatically paid into your super account each time you\u2019re paid, helping you grow your retirement savings consistently and tax-effectively.<\/p>\n The end of financial year is also a great time to review your super fund\u2019s performance and fees. At Vanguard, we\u2019re committed to offering Australians a low-cost, easy-to-understand superannuation option that\u2019s built for long-term growth.<\/p>\n Learn more about\u00a0how to make the most of your super before 30 June\u00a0by visiting the Vanguard Super website.<\/p>\n \u00a0<\/p>\n Important information:\u00a0<\/strong><\/sup><\/p>\n The above examples are illustrative only and are based on the factors stated. It should not be taken to contain or provide an estimate or forecast. This information is not a substitute for tax advice. It has been prepared based on a set of assumptions which may not be applicable to you. If you are in any doubt about your personal tax position, we recommend that you seek tax advice from a registered tax agent.\u00a0<\/sup><\/p>\n 1. Assumes 15% contributions tax on voluntary super contributions and gross investment returns of 6.4% based on the 10-year average annualised rate of return published in the APRA Annual Superannuation Bulletin (January 2025). Past performance should not be relied upon, and is not, an indication of future performance.<\/sup><\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n 11 June 2025 The power of regular voluntary super contributions<\/p>\n","protected":false},"author":1,"featured_media":2208,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/2207"}],"collection":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=2207"}],"version-history":[{"count":1,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/2207\/revisions"}],"predecessor-version":[{"id":2209,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/2207\/revisions\/2209"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/media\/2208"}],"wp:attachment":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=2207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=2207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=2207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n\n
\n \u00a0<\/th>\n \n \n \n \n \n \n \n \u00a0<\/td>\n \n \n \n \n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nHow topping up your super balance before 30 June could reduce your tax bill<\/h3>\n
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\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nDon\u2019t leave it to the last minute<\/h3>\n
\nBy Vanguard
\nvanguard.com.au<\/p>\n","protected":false},"excerpt":{"rendered":"