How to Cut Your Tax Rate from 37% to 15%—Legally, Through Your Super 

Are you earning more than $135,000 per year?

Starting FY2026, this puts you into the 37% marginal tax bracket. Add the Medicare levy, and you’re easily losing over a third of every additional dollar earned to tax. 

But here’s the good news: 
You may be able to cut a portion of your income tax down to just 15%—by contributing strategically to your superannuation. 

How It Works:

Australia’s concessional (pre-tax) super contributions are only taxed at 15%. That’s a big contrast to the 37% you’d otherwise be paying. 

• Concessional contribution cap for FY2026: $30,000 
• You can contribute up to this amount from your salary or business income. 
• Instead of paying 37%+ on that income, it’s taxed at just 15% inside super. 
• Potential tax saving: up to $6,600 per year. 

What Counts as Concessional Contributions?

• Employer Super Guarantee 
• Salary sacrifice arrangements 
• Personal deductible contributions (if self-employed or not sacrificing through work)

Common Mistakes to Avoid: 

• Contributing over the cap (excess tax applies) 
• Not lodging a notice of intent for deductible contributions 
• Waiting until June—most super funds have earlier deadlines 

Real Client Case: 

Sarah, a 45-year-old doctor earning $180,000, used to pay tax at 37%. 
After salary sacrificing $20,000 into super, she saved around $4,400 in tax that year—and invested for retirement at a lower tax rate. 

Bonus Tip: 

Super isn’t just a retirement vehicle. It’s one of the most powerful tax planning tools available to high-income earners in Australia. 

Want to know how much tax you can save and how to structure it properly? 

Book a complimentary strategy session with us today. 
Let’s make your income work harder—not just for the ATO.