By Paul Feeney, CEO and Founder of Otivo

I was walking to work the other day on a cracking spring morning when I found myself thinking about one of the simplest but most overlooked ways Australians can grow their superannuation. It’s something that doesn’t require complex strategies or advanced investing knowledge. It’s simply about using money from your own savings and putting it to work inside your super fund.

That’s right — taking money you already have sitting in the bank and giving it the chance to grow in the tax-friendly environment of super. In financial jargon, these are called non-concessional contributions.

It might sound technical, but stick with me. I’ll break it down step by step and explain why this can be a powerful move for your retirement, how much you can contribute, the rules you need to know, and where Otivo can help.

What are non-concessional contributions?

A non-concessional contribution is money you contribute to your super fund from your after-tax savings.

You’ve already paid income tax on this money when you earned it. It might be sitting in a savings account, a term deposit, or an offset account. By choosing to move it into your super, you don’t get a tax deduction — instead, you benefit because all future investment earnings on that money are taxed at just 15%.

Why does that matter? Because most Australians are on a marginal tax rate of 30% or more. If your money stays outside super, the tax office takes a much bigger bite out of your returns every year. Inside super, the bite is much smaller — leaving more of your money to compound over time.

This is why non-concessional contributions can be such a smart move for people with spare savings.

How much can you put in each year?

From 1 July 2024, the non-concessional contributions cap is $120,000 per year.

That means you can move up to $120,000 from your after-tax savings into super each year. For many Australians, that’s a meaningful way to give their super a boost, especially as they approach retirement and want to maximise their balance.

But the rules get even more interesting when you look at the bring-forward rule.

How the bring-forward rule works

The bring-forward rule allows you to make up to three years of non-concessional contributions in one go. Instead of being limited to $120,000 in a single year, you can contribute up to $360,000 at once.

This rule is particularly helpful if you:

• Sell an investment property and want to put the proceeds into super
• Receive an inheritance and want to put it towards your retirement
• Have large savings or bonuses you’d prefer to grow in super’s tax-effective environment

Think of it as a way to hit “fast forward” on your super growth. Instead of drip-feeding money in over three years, you can make a lump sum contribution now and enjoy more years of compounding returns.

Why contribute savings to super instead of leaving them in the bank?

You might be asking: why not just leave my money in my savings account where I can access it anytime?

Here are three big reasons why moving savings into super can be smarter:

Lower tax on investment earnings

Money inside super is generally taxed at 15% on earnings. Compare that to your personal tax rate, which might be 32.5%, 37% or even 45%. That’s a massive difference over time.

Compounding growth

Because you’re paying less tax on investment earnings, more of your returns stay invested. Over 10, 20, or 30 years, this difference compounds into a much larger retirement balance.

Retirement focus

Savings in the bank are easy to dip into. By moving them into super, you’re effectively quarantining that money for your future self. It’s a way of saying: “This is for my retirement, not for day-to-day spending.”

A simple example of the tax savings

Let’s put some numbers behind this.

Imagine you have $100,000 in savings. You leave it in a bank account earning 4%. That gives you $4,000 in interest. If you’re on a 37% tax rate, you’ll lose $1,480 of that in tax, leaving you with $2,520.

Now, put the same $100,000 into super. It earns the same 4%, giving you $4,000. Tax inside super is just 15%, or $600. That leaves you with $3,400.

That’s a difference of $880 in just one year. Over 20 years, with compounding, the difference could add up to tens of thousands of dollars — all because you used the super system’s tax advantages.

When the bring-forward rule makes sense

The bring-forward rule is particularly powerful if you have a large lump sum. For example:

• You sell an investment property and net $300,000.
• You contribute the whole amount into super under the bring-forward rule.
• From that point, your $300,000 grows inside super at the concessional 15% tax rate on earnings.

If your balance grows at an average of 6% per year, that $300,000 could grow to more than $960,000 over 20 years. And because it’s inside super, less of it gets eaten away by tax along the way.

Who can make non-concessional contributions?

Not everyone can make these contributions, so it’s worth checking the rules.

Age restrictions – If you’re over 75, you generally can’t make non-concessional contributions (except in limited circumstances).

Total super balance – If your total super balance is $1.9 million or more (from July 2024), you’re not eligible to make non-concessional contributions.

Bring-forward eligibility – Your total balance also determines whether you can use the bring-forward rule and how much you can put in.

This is where advice is important. The rules change depending on your age, balance, and personal circumstances.

Downsizer contributions vs non-concessional contributions

Another option some Australians have is the downsizer contribution. This allows people aged 55 and over to contribute up to $300,000 from the proceeds of selling their home into super, regardless of their existing balance.

So how does this compare with non-concessional contributions?

• Non-concessional contributions come from your savings and are subject to caps ($120,000 per year, or $360,000 under bring-forward).
• Downsizer contributions come from selling your main home and have their own $300,000 cap.

Great news is, you can even use both — which can significantly boost your super in the years leading up to retirement.

What difference does this make at retirement?

At Otivo, we’ve run the numbers on what smarter contribution strategies can mean for Australians. On average, people who follow our advice on contributions end up with an extra $180,356 at retirement.

That’s money that can be the difference between just scraping by and enjoying the lifestyle you’ve worked hard for.

And the best part? It’s often achieved by taking action with money you already have — not by taking on extra risk or debt.

How Otivo makes it simple

Super rules are full of jargon — non-concessional contributions, bring-forward provisions, total balance limits, and so on. For most people, that complexity is enough to stop them acting.

That’s where Otivo comes in.

Our licensed digital advice platform helps you cut through the noise and figure out what’s right for you. Here’s how it works:

• You answer a few simple questions online.
• Our system checks the latest contribution rules, your balance, and your age.
• You get clear, licensed advice tailored to your situation — all in minutes.

On average, Australians who use Otivo are $371,031 better off when they follow our advice across super investments, contributions, and debt strategies.

Key takeaways

• Non-concessional contributions are after-tax contributions from your savings.
• You can contribute up to $120,000 per year, or $360,000 at once with the bring-forward rule.
• Money inside super is taxed more lightly, meaning more of it stays invested and compounds.
• Eligibility depends on your age and total super balance.
• Even modest contributions today can add up to hundreds of thousands by retirement.
• Otivo makes it easy to know what’s right for you, with licensed advice available in minutes.

Final word

Super is one of the most powerful wealth-building tools Australians have. But too often, people only think about their employer’s contributions and forget they can grow their balance faster by using their own savings.

If you’ve got money sitting in the bank or elsewhere, consider whether moving it into super as a non-concessional contribution could be the right move.

It’s about giving your money the best chance to grow, paying less tax along the way, and setting yourself up to be better off in retirement.

And remember, you don’t have to figure this out alone. With Otivo, you’ll get clear, licensed advice tailored to your situation so you can act with confidence.

Be better off. Start today.