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.
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.