Super Recontribution Optimizer 2026
Estimate how much tax your heirs can save by implementing a Super recontribution strategy to convert taxable components into tax-free ones.
Last updated: May 2026
Check your latest Super statement for this split.
Max non-concessional cap is usually A$120,000/yr.
Death Tax Saved for Heirs
Assuming 17% tax for non-dependants
New Tax-Free Component
Strategy: By withdrawing taxable funds and recontributing them as non-concessional (tax-free) funds, you protect your estate from future tax liabilities.
Reviewed by CA Rohit Sharma
•Chartered Accountant & Tax ExpertExpert in Indian taxation, corporate finance, and mortgage compliance. Rohit ensures that all tax-related calculations and loan eligibility criteria align with current regulatory standards. All mathematical models and regulatory data points have been verified for the current 2026 fiscal period.
Estate Planning for Super
In Australia, your Superannuation balance is divided into two components:Taxable and Tax-free. If you pass away, dependants (like a spouse) receive your Super tax-free. However, non-dependants (like adult children) must pay 15% tax + 2% Medicare levyon the taxable component.
The Recontribution Strategy involves withdrawing a portion of your taxable Super balance (once you reach preservation age and satisfy a condition of release) and recontributing it as aNon-concessional contribution. This effectively washes the taxable status away, protecting your heirs from a massive tax bill in 2026.
How to use this calculator
- 1Check Balance — Find your current total Super balance and the split between taxable/tax-free components from your provider.
- 2Recontribution Amount — Select how much you plan to 'wash' through a withdrawal and re-deposit (watch the A$120k annual cap).
- 3View Tax Savings — The calculator shows the total 'Death Tax' that will no longer be due on that specific amount.
- 4Long Term Projection — Understand the impact on your total tax-free component over time.
Formula & example
Death Tax Saved = Recontribution Amount × 17%
Example: A$100,000 Recontribution.
- Current Heir Tax Liability: A$17,000
- Post-Recontribution Heir Tax: A$0
- Result: A$17,000 more goes to your children instead of the ATO.
Benefits
Tax-Free Heirs
Ensure your hard-earned savings reach your children fully without a 17% government haircut.
Lower Tax on Withdrawals
If you eventually need to withdraw a lump sum before age 60, a larger tax-free component reduces your own tax.
Simple Implementation
It's a purely administrative strategy that doesn't change your investment profile.
Use cases
Retirees (Age 60-75)
Anyone who has reached preservation age and still has room within the non-concessional caps.
Adult Children Heirs
Planning the legacy of your estate when your primary beneficiaries are not financial dependants.
Pension Transition
Maximizing the tax-free component before moving funds into the 'Account-Based Pension' phase.
Frequently asked questions
Is there an age limit?+
Generally, you can make non-concessional contributions until age 75. However, you must satisfy a condition of release to withdraw the funds first.
What are the contribution caps?+
For the 2024/25 year, the cap is A$120,000 per year, or A$360,000 using the 'bring-forward' rule (subject to your total super balance).
Can I do this multiple times?+
Yes! Many Australians repeat this strategy over several years to progressively convert their entire balance into tax-free funds.