Voluntary Accumulation Plans in Australia: 2025 Guide

With cost-of-living pressures and shifting retirement rules, Australians are rethinking how they save and invest. Voluntary accumulation plans—once niche—are now a go-to strategy for those seeking flexibility, tax advantages, and steady wealth growth in 2025.

What Is a Voluntary Accumulation Plan?

A voluntary accumulation plan (VAP) is an investment approach where individuals contribute regular amounts—weekly, monthly, or quarterly—into a managed fund, superannuation, or other investment vehicle. Unlike compulsory super, contributions are made at the investor’s discretion, allowing for greater control and adaptability.

• Flexibility: Investors can start, pause, increase, or reduce contributions at any time.
• Dollar-cost averaging: Regular investing helps smooth out market volatility, buying more units when prices are low and fewer when prices are high.
• Accessible to all: Minimum contribution amounts are typically low, making VAPs suitable for a wide range of Australians.

In 2025, VAPs are offered by major banks, super funds, and investment platforms. For example, industry superannuation funds and fintech platforms like Spaceship and Raiz allow users to automate voluntary deposits—often with as little as $5 per week.

Why Are Voluntary Accumulation Plans Trending in 2025?

Several policy updates and economic trends are propelling the popularity of VAPs this year:

• Superannuation contribution changes: From July 2025, the concessional (before-tax) contribution cap increases to $30,000 per year, opening more room for voluntary top-ups—especially for those nearing retirement or returning to work after a career break.
• Tax benefits: Voluntary contributions to super can be taxed at just 15% (or less for low-income earners), compared to marginal rates up to 45%. Non-super VAPs also benefit from long-term capital gains discounts.
• Cost-of-living response: With inflation still above target and household budgets under pressure, VAPs offer a disciplined way to save and invest without needing a large upfront commitment.
• Technology and automation: Modern platforms make setting up and managing VAPs easier than ever, with apps sending reminders, tracking performance, and even rounding up spare change for investment.

Real-world example: Sarah, a 32-year-old teacher in Melbourne, uses a voluntary accumulation plan to invest $200 a month into a balanced managed fund. Over five years, her small, regular contributions—combined with market growth and tax savings—have built a $15,000 investment nest egg, all while maintaining flexibility in case her financial situation changes.

Setting Up a Voluntary Accumulation Plan: What to Know

Thinking of starting your own VAP in 2025? Here’s what to consider:

1. Choose your vehicle: Superannuation, managed funds, ETFs, or micro-investment apps all support voluntary accumulation. Assess fees, performance, and accessibility.
2. Set your schedule: Decide how much and how often you’ll contribute. Even $10 a week can add up over time.
3. Understand the tax implications: Voluntary super contributions may be eligible for government co-contributions, spouse contributions, or personal deduction claims. Non-super plans offer flexibility but may be subject to capital gains tax on withdrawals.
4. Track and review: Use digital tools to monitor your progress, rebalance if needed, and adjust as your goals or circumstances shift.

In 2025, the ATO’s myGov portal and most investment platforms provide detailed dashboards, making it easy to see how your plan is performing and what you might need to tweak as your financial situation evolves.

Potential Pitfalls and Pro Tips

While voluntary accumulation plans are powerful, there are a few traps to avoid:

• Overlooking fees: High management or platform fees can erode returns over time. Always compare costs before committing.
• Lack of diversification: Ensure your VAP includes a mix of asset classes (shares, bonds, property) to manage risk.
• Inconsistent contributions: The magic of compounding works best with regular, uninterrupted investing. Set up automatic debits to stay on track.

Pro tip: Many Australians use VAPs in tandem with salary sacrifice arrangements, boosting retirement savings while lowering taxable income. Check your employer’s policies and the latest ATO guidance for 2025 to maximise benefits.