6 Things You May Not Know About Superannuation

Here are 6 things about superannuation that could make a real difference to your retirement planning and wealth building strategy.

Superannuation is much more than just a percentage of your wage, it’s a flexible, tax-effective wealth vehicle with rules that could work in your favour provided you know them.

1. You Can Contribute to Super Up to Age 75 Without a Work Test

From 1 July 2022, Australians aged 67 to 74 can make non-concessional (after-tax) contributions to super without needing to satisfy the work test.

This means retirees who have stopped working can still top up their super—perhaps from savings, downsizing proceeds, or an inheritance—before starting an income stream. It’s a valuable strategy for boosting retirement balances late in life.

2. Your Super Doesn’t Automatically Go into Your Will

Superannuation sits outside your estate. If you haven’t made a binding death benefit nomination, your fund’s trustees decide who receives it.

For peace of mind, ensure you’ve nominated beneficiaries—and remember, without this, your super may not go where you intend.

3. Insurance Premiums Inside Super Can Be Tax Deductible

Holding life insurance or total and permanent disability (TPD) cover inside super can be cost-effective. Premiums are paid from your super balance rather than your take-home pay, and in many cases, they’re tax deductible to the fund.

It’s a way of protecting your family without straining your household budget—though it does reduce your retirement balance over time.

4. SMSFs Now Hold More Wealth Than Industry and Retail Funds

Self-Managed Super Funds (SMSFs) collectively hold more assets than either industry or retail super funds. That shows the popularity of having greater control over investments—though SMSFs also require careful management, compliance, and advice.

5. You Can Use Downsizing Contributions to Boost Super

If you’re over 55 and sell your family home, you can put up to $300,000 per person (or $600,000 as a couple) into super from the proceeds—outside the usual contribution caps.This is especially handy for those with low super balances but high equity in their home.

6. Investment Earnings in Retirement Can Be Tax-Free (Up to a Limit)

When you retire and start drawing an income from your super (through an account-based pension), the money your super earns from investments such as interest or dividends can be tax-free. But there are limits into how much super you can have in this tax-free retirement phase. As of 1 July 2025, the cap was increased to $2 million. If you have more than that the specified limit the extra must stay in an accumulation account, where investment earnings are still taxed at 15%.
This is a powerful advantage over keeping money outside super, where earnings are taxed at your marginal rate. For many, it’s the difference between stretching retirement savings for 20 years instead of 15.

At Cashflow Financial, we help clients make the most of their super through smart tax planning, contribution strategies, and retirement structuring. Whether you’re just starting out, approaching retirement, or already drawing a pension, the right strategy can make all the difference. Contact use today, we are here to help.