How to Grow Your Super Faster

Salary sacrificing up to the $27,500 concessional cap each year is a powerful strategy to reduce taxable income and boost your super savings. By directing pre-tax income into your super fund, you can take advantage of the lower 15% tax rate on concessional contributions. This approach not only enhances your retirement savings but also provides immediate tax benefits. It is important to monitor your contributions throughout the year to avoid exceeding the cap, as excess contributions may attract additional taxes and penalties. Regularly reviewing your salary sacrifice arrangements and consulting with a financial advisor can help you optimize this strategy.

The carry-forward rule allows individuals to utilize unused concessional cap amounts from the previous five years, provided their total super balance is under $500,000. This provision enables higher contributions in a single year, offering flexibility for those who may have had limited capacity to contribute in prior years. For example, if you did not fully utilize your concessional cap in previous years, you can make larger contributions now to catch up. This strategy is particularly beneficial for individuals who experience income fluctuations or receive windfalls, as it allows them to maximize their super savings during high-income periods.

Superannuation is a long-term savings plan designed to provide financial security during retirement. Contributions are made by employers, individuals, or the government, and the funds are invested to grow over time. Understanding the basics of superannuation, including contribution types, tax benefits, and withdrawal rules, is essential for making informed decisions about your retirement savings. By familiarizing yourself with these fundamentals, you can take advantage of opportunities to maximize your super balance and ensure a comfortable retirement.

Selecting the right super fund is a critical decision that can impact your retirement savings. Factors to consider include fees, investment options, performance history, and customer service. Comparing different funds and understanding their offerings can help you choose one that aligns with your financial goals and risk tolerance. Additionally, some funds offer specialized options, such as ethical investments or tailored portfolios, which may suit your preferences. Regularly reviewing your fund's performance and making adjustments as needed ensures your superannuation strategy remains effective.

The Australian government provides several incentives to encourage individuals to grow their superannuation savings. These include co-contributions for low-income earners, the low-income super tax offset (LISTO), and spouse contributions. Understanding these incentives and how to qualify for them can significantly enhance your super balance. For example, making personal contributions up to a certain limit may entitle you to a government co-contribution, effectively increasing your savings. Leveraging these opportunities ensures you maximize the benefits available to you.

Economic downturns can impact the performance of superannuation investments, but proactive management can help mitigate risks. Diversifying your portfolio, reviewing asset allocations, and considering defensive investment options are strategies to protect your super balance during volatile periods. Additionally, staying informed about market trends and seeking advice from financial professionals can provide valuable insights for navigating economic challenges. By taking a proactive approach, you can safeguard your retirement savings and maintain long-term growth potential.

Superannuation funds charge fees for managing your account, which can include administration fees, investment fees, and insurance premiums. Understanding these fees and their impact on your super balance is crucial for optimizing your savings. Comparing fee structures across different funds and choosing one with competitive rates can help minimize costs. Additionally, reviewing your account regularly and consolidating multiple super accounts into one can reduce unnecessary fees and simplify management. Being aware of these charges ensures you make informed decisions about your superannuation strategy.

As we approach June 30, 2025, it’s crucial to compare Australia’s two largest super funds—AustralianSuper and Hostplus—to ensure you maximise returns, minimise fees, and manage risk before EOFY.

AustralianSuper serves over 3.2 million members and manages more than $300 billion. Their Balanced option has delivered 8.44% p.a. over 10 years, with fees of 0.66% p.a. and around 4 negative years in 20.

Hostplus, originally for hospitality workers, now has 1.7 million members and $100 billion under management. Their Indexed Balanced option charges just 0.06% p.a., returned 8.15% p.a. over 10 years, and experienced 3 negative years in 20.

AustralianSuper Balanced: 0.66% p.a. vs Hostplus Indexed Balanced: 0.06% p.a. — a 0.60% difference that can translate to tens of thousands of dollars over decades.

10-year returns: 8.44% p.a. for AustralianSuper Balanced vs 8.15% p.a. for Hostplus Indexed Balanced. While AustralianSuper leads slightly, Hostplus’ passive approach offers consistency at minimal cost.

Both funds have seen volatility with negative returns in 4 (AustralianSuper) and 3 (Hostplus) years out of 20. Use our simulation tool to visualise year-by-year swings and average outcomes.

Review both funds in Balance Compare, then switch via MyGov or your member portal. Submit any rollovers and salary sacrifice changes by June 25 to ensure processing before EOFY.

Enter your age, balance, income, and contribution details into Balance Compare to see personalised projections for both AustralianSuper and Hostplus: https://balancecompare.com/compare

EOFY 2025 is your last opportunity to optimise super for the year. A clear comparison between AustralianSuper and Hostplus today can deliver better retirement outcomes tomorrow.