If you’re a woman working in medicine, your career might not have followed a straight path. Maybe you’ve taken time off for maternity leave, switched to part-time work to balance family commitments, or worked as a contractor without consistent super contributions. Good news is that Superannuation Catch-Up gives you a chance to boost your retirement savings and get back on track. Here’s how it works and why it’s a game-changer for women in medicine.

What’s the Catch-Up rule all about?

The super catch-up lets you access unused concessional (pre-tax) contribution caps for up to five years. This means you can make extra contributions in a single year to give your super a healthy boost—and enjoy some handy tax perks while you’re at it.

Key things you need to know:

1. How much you can contribute:
   • For the 2023/24 financial year (FY), the concessional contribution cap was $27,500 (it’s now $30,000 in FY25). This includes your employer’s Super Guarantee and any extra contributions you make, like salary sacrificing or personal payments that you claim a tax deduction for.
2. Who’s eligible:
   • To use Super catch-up, your total super balance must be under $500,000 on June 30 of the previous financial year.
   • If you’re aged 67-74, you’ll need to meet extra work test requirements.
3. How it works:
   • Let’s say you only contributed $17,500 to your super last year. That means you’ve got $10,000 of your $27,500 cap left over. This year, you could put in up to $40,000 ($30,000 cap for FY25 + $10,000 unused) and claim a tax deduction.

As working women, we often face unique challenges when it comes to building super. Career breaks, part-time work, and caregiving roles can all mean less money going into your account. The catch-up rule is here to help even the playing field, giving you the chance to grow your super faster when you can.

For women in medicine, this is a big deal. Whether you’re running a practice, working shifts, or juggling multiple roles, making extra contributions could make a huge difference to the saved funds you have available when you retire.

How to make the most of it

1. Keep an eye on your super balance:

• • If your balance is over $500,000 on 30 June, you are unable to make a carry forward concessional contribution. However, if your super balance is below $500,000 in a later year on 30 June, you’re back in a position to top up.

1. Set up regular contributions:
   • Automating monthly contributions is a great way to stay consistent without scrambling for a big lump sum at the end of the year. It’s a “set it and forget it” approach.
2. Use spousal contributions:
   • If you have a high Super balance, think about splitting contributions with your spouse. This could help you stay under the cap and make the most of your options.
3. Watch out for high incomes:
   • If you’re earning over $250,000, extra contributions might be hit with a 15% Division 293 tax. A financial adviser can help you navigate this.  Check out our ‘The Money Doctors’ podcast episode about this topic called ‘The Dreaded Div 293’ for more information.

Take control of your future

The catch-up rule isn’t just about saving on tax; it’s about taking charge of your financial future. By using these contributions, you can bridge the gap, grow your retirement nest egg, and feel more confident about what lies ahead.

Final thoughts

As a medical professional, you spend your working days looking after others. Isn’t it time to look after yourself? Chat with a financial adviser to figure out the best strategy for you. The sooner you start, the better off you’ll be.

As this general advice has been prepared without taking account of your objectives, financial situation or needs, you should consider the appropriateness of this advice before acting on it. If this general advice relates to acquiring a financial product, you should obtain a Product Disclosure Statement before deciding to acquire the product.

 vanessa smith BBus (Acc), CFP^®,  SSA®, Adv Dip FS (FP), Cert IV FMB |

Director – Advice

Bongiorno Group

For further information or to book an exclusive AMAV member complimentary meeting, please phone 03 9863 3111 or email amav@bongiorno.com.au