Superannuation Strategy — Dean & Kara (2025-26)¶
Strategy to optimise super contributions using salary sacrifice, contribution splitting, and the spouse contribution tax offset.
Incomes & Tax Brackets¶
| Person | Salary | Marginal Rate |
|---|---|---|
| Dean | $85,000 | 30% |
| Kara | $31,000 | 16% |
Dean's employer SG (12%): ~$10,200/yr (auto)
Concessional Contributions Cap¶
| Item | Amount |
|---|---|
| Annual concessional cap (2025-26) | $30,000 |
| Dean's employer SG used | $10,200 |
| Dean's remaining headroom | $19,800 |
Going over $30,000 triggers extra tax.
Scenario: $10,000 Salary Sacrifice¶
Instead of receiving $10,000 as income (taxed at 30%), it goes into super (taxed at 15%).
| Without | With | |
|---|---|---|
| Tax on $10k | $3,000 (30%) | $1,500 (15%) |
| Tax saving | $1,500 | |
| Take-home reduction | ~$7,000 | |
| Amount landing in super | $8,500 |
Contribution Splitting¶
After financial year end, Dean can split up to 85% of concessional contributions into Kara's super.
- 85% of $10,000 = $8,500 moves to Kara's account
- Tax saving already happened on Dean's end
- Counts against Dean's caps, not Kara's
Why split: evens up retirement balances, grows Kara's super faster, can help with Age Pension asset testing.
Spouse Contribution Tax Offset¶
Dean contributes $3,000 from after-tax pay into Kara's super via BPAY → gets 18% tax offset (up to $540/yr).
- Kara earns $31,000 → under $37,000 threshold → qualifies for full offset
- Separate to salary sacrifice — just a bank transfer into her super
- Essentially an 18% instant return on $3,000
Full Year Summary ($10k sacrifice + $3k spouse)¶
| Action | Benefit |
|---|---|
| $10k salary sacrifice (30% → 15%) | $1,500 tax saved |
| $3k spouse contribution offset | $540 back at tax time |
| Total annual benefit | $2,040 |
| Extra flowing into super | ~$11,500 |
If Dean Maxes Headroom ($19,800 sacrifice)¶
| Item | Amount |
|---|---|
| Tax saving (30% → 15%) | ~$2,970 |
| + Spouse offset | $540 |
| Total benefit | ~$3,510 |
Key Rules¶
- Salary sacrifice goes into your own super only
- Contribution splitting is the workaround (done after year end through your fund)
- Total concessional must stay under $30,000/yr
- Kara must be under 60 (or 60–65 not retired) to receive split
- Kara's total super balance must be under $2 million
- Unused concessional cap can be carried forward if balance < $500,000
Based on 2025-26 ATO rates. Not financial advice — speak to an accountant.
Related¶
- [[Index]]
- [[Retirement Calculator]]