Are You Locked into Your Super?
Are You Locked into Your Super? Here’s What You Need to Know
Managing superannuation (super) can seem overwhelming, especially when you’re trying to navigate complex rules, contribution caps, and strategies to maximize your retirement savings. Recently, ABC Radio’s Lisa Leon hosted a discussion with superannuation expert Marco Mellado to answer burning questions from listeners. Here’s a summary of the insightful discussion and advice shared.
Am I Too Late to Start?
Question: I’m 51 and only just getting into my super and investments. Am I too late?
Marco’s Answer:
It’s never too late to improve your financial position. At 51, you still have time to make meaningful contributions to your super. Key steps include:
- Contribute What You Can: Evaluate your budget and prioritize regular contributions.
- Review Your Investments: Align your investment portfolio with your risk tolerance and goals.
- Explore Creative Options: Consider rolling existing investments into your super if rules permit.

Replacing Withdrawn Super Funds
Question: During COVID-19, I withdrew $20,000 from my super. Can I replace it without breaching contribution caps or paying extra tax?
Marco’s Answer:
Yes, but you must consider contribution limits:
- Concessional Contributions: These are tax-deductible and capped at $27,500 annually, including employer contributions. Contributions attract a 15% tax but still offer significant tax savings.
- Non-Concessional Contributions: These are capped at $110,000 annually and do not offer tax deductions. You can utilize the bring-forward rule to contribute up to $330,000 in one year, provided you don’t exceed limits over three years.
Helping Your Kids with Super Withdrawals
Question: Can I withdraw money from my super to help my kids with their mortgage?
Marco’s Answer:
If you’re over 60 and meet a condition of release (e.g., retirement, switching jobs, or reaching 65), you can withdraw super tax-free. Once withdrawn, the money is yours to use, including gifting it to your kids. However, be mindful of Centrelink rules if you’re on the age pension, as this could affect your benefits.
Selling Property and Contributing to Super
Question: If I sell an investment property, can I contribute the proceeds to my super?
Marco’s Answer:
Yes, but contributions must adhere to caps:
- Use the bring-forward rule for non-concessional contributions (up to $330,000 in one go).
- Leverage the catch-up concessional contributions if you’ve contributed less than $27,500 annually over the past five years and have a balance under $500,000.
Locked Out of Your Fund?
Question: I’m self-managing part of my super but have been locked out due to a fund’s web upgrade. What are my options?
Marco’s Answer:
Unfortunately, funds have the authority to restrict access, often due to illiquid investments. If you’re considering moving funds, transitioning to a self-managed super fund (SMSF) might allow you to transfer specific assets, though this requires careful planning and compliance with SMSF rules.
Contributing After Retirement
Question: Can I contribute to my super after retiring or turning 65?
Marco’s Answer:
Yes, non-deductible contributions can be made without incurring the 15% tax. For retirees, this is a tax-efficient way to save and grow wealth within the super system.
Key Takeaways
- Understand Your Caps: Know your concessional and non-concessional contribution limits.
- Leverage Super Strategies: Use the bring-forward and catch-up rules to maximize contributions.
- Stay Informed: Regularly review your fund’s rules, investment options, and market conditions.
- Seek Advice: Complex scenarios, such as withdrawing for personal reasons or transitioning to an SMSF, require tailored advice from a financial advisor.
Superannuation is a powerful tool for securing your financial future, but navigating its rules can be challenging. With the right strategies and expert guidance, you can make the most of your super—whether you’re starting late, replacing withdrawn funds, or planning your retirement.