by sophie doyle, retirement and financial aged care specialist
Sophie Doyle | Erina | Morgans
For many Australians over 55, superannuation is one of the largest assets they hold outside the family home. Yet it is often something we only start paying closer attention to as retirement approaches.
The good news is that a little understanding can make a big difference. Knowing how your super is structured and what options may still be available can help you move forward with greater confidence.
The two parts of your super
Your super balance is generally made up of two components: a tax free component and a taxable component. The tax free component usually includes after tax contributions you have made over the years. When accessed after age 60, this portion is received tax free. The taxable component includes employer contributions such as Super Guarantee, salary sacrifice amounts and investment earnings within the fund.
For most people over 60 who have met a condition of release, withdrawals from a taxed super fund are usually tax free. Even so, the taxable component may still matter later on, particularly when thinking about what happens to your super after you are gone.
Why the mix matters
Many people are surprised to learn that superannuation can be taxed when it is paid to financially independent adult children. If a large portion of your super balance is made up of the taxable component, tax may apply when it is paid to adult children. Super paid to a spouse, however, is generally received tax free. This means two people with similar super balances could leave very different after tax outcomes to their families, simply because of how their super is structured.
A practical example
Let’s imagine two people, Anne and Julie. Both have a super balance of $800,000 when they pass away.
Anne’s super is made up mostly of the tax free component. Julie’s super is made up largely of the taxable component. If their super is paid to financially independent adult children, Anne’s children may receive close to the full $800,000. Julie’s children, however, may need to pay tax of up to 17 percent on the taxable portion before it is distributed. If most of her balance is taxable, this could mean well over $100,000 in tax. Even though Anne and Julie had the same total super balance, their families receive very different outcomes simply because of how their super was structured.
In some situations, strategies available before age 75 may help adjust this balance. The key is understanding how your super is divided and whether it still reflects your wishes.
Can you still contribute?
If you are under age 75, you may still be able to contribute to super, depending on your circumstances.
One common type is the non concessional contribution. These are contributions made from money that has already been taxed, for example from savings, an inheritance, or the sale of an asset.
For the 2025 to 2026 financial year, the annual non concessional contribution cap is $120,000. If eligible, you may be able to use the bring forward rule to contribute up to $360,000 over a three year period.
From 1 July 2026, the annual cap is expected to increase in line with indexation, although this has not yet passed legislation and must receive Royal Assent before becoming law. Your eligibility to contribute may depend on your total super balance at 30 June of the previous financial year.
It is also worth noting that Downsizer contributions are separate and do not count towards the non concessional cap. If you are aged 55 or over and have owned your home for at least 10 years as your main residence, you may be eligible to contribute up to $300,000 per person to super when you sell.
Why this is worth reviewing
Superannuation is not just a retirement savings account. It can also play an important role in estate planning and long term tax outcomes. Contribution rules change, balances grow and personal circumstances evolve. What suited you 10 years ago may not be the most appropriate structure today.
A simple review can help answer questions such as: Do I understand how my super is structured? Am I eligible to make additional contributions? Is my beneficiary nomination up to date? Does my super still align with my overall retirement plans?
You do not need to become an expert in super rules. However, having clarity can help you feel informed and in control as you move into the next stage of life.
Have you had your super fund health check lately?
If it has been a while since you reviewed your super, now may be a good time for a super fund health check. Understanding how your super is structured, whether you are eligible to make additional contributions, and how your beneficiary nominations are set up can provide reassurance. Even small adjustments can have a meaningful impact over time.
If you are unsure where you stand, speaking with a professional can help you better understand your options and ensure your super continues to support your long term goals.
Sophie Doyle is a Retirement and Aged Care Specialist based on the Central Coast. She works with individuals and families over 55 to navigate superannuation, retirement planning and aged care decisions with clarity and confidence. Sophie Doyle (AR No. 000470612) is an Authorised Representative of Morgans Financial Limited (AFSL 235410, ABN 49 010 669 726). The information in this article is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making any financial decisions, you should consider whether the information is appropriate to your circumstances and seek professional advice where necessary. Superannuation regulations are subject to change at anytime. Information current as at 1 February 2026.