The recontribution strategy is an approach used to increase the proportion of the “tax-free” component in a superannuation account. It generally provides no benefit during the account holder’s lifetime, as it’s intended to reduce tax incurred by tax non-dependent beneficiaries (usually adult children) when receiving a taxable portion of inherited superannuation. It is undertaken in the “sweet spot” age range, where somebody can withdraw money from their super and make personal contributions.
When withdrawing from super, money is taken proportionally from the taxable and tax-free components of the account. When contributing money back in as a non-concessional contribution, it is added only to the tax-free component. This doesn’t change the total balance but generally shifts the proportions, reducing the taxable component and increasing the tax-free component. This concept can be quite abstract and difficult to understand, and I’ve often found it challenging to explain clearly in conversation. This calculator was intended to find a clear visual to show exactly what happens when a recontribution strategy is implemented.
This calculator uses FY 2025–26 rules for contribution caps, total super balance thresholds, and tax rates. I will aim to update it if and when superannuation rules change. It assumes you are aged 60 or over but under 75, can withdraw tax-free from super and recontribute back into super, and complete both steps in the same financial year into the same account.
It also includes a safeguard to prevent non-concessional contributions being made that exceed the maximum allowed under both the NCC cap and the bring-forward rule, based on the total super balance at 30 June of the previous financial year (note: the NCC cap is nil for a TSB above $2 million).
This calculator is for educational purposes only and should not be considered as financial, tax, or other professional advice. Results are based on the information entered, the assumptions outlined above, and legislation current at the time of creation. This calculator does not take into account your personal objectives, financial situation, or needs. While care has been taken to ensure accuracy, no warranty is given and no responsibility is accepted for any loss, damage, or reliance arising from its use. There are risks to implementing a recontribution strategy, including the need to meet eligibility criteria to both withdraw from and contribute back to super.
Using your contribution caps and/or the bring-forward rule in this way may limit your ability to make additional contributions in the future. This may be appropriate if you are certain you will not need to contribute more, but could be detrimental if your circumstances change. Before acting on any financial strategy, seek personalised advice from a licensed financial adviser, accountant, or tax agent. Attempting to implement financial strategies yourself and getting it wrong can be far more costly than obtaining appropriate professional advice from the outset.