The superannuation changes effective from 1 July 2024 are designed to enhance the retirement savings of individuals – and offer more flexibility and control over superannuation funds.
Here is an overview of the key changes:
- Concessional Contribution Cap Increase:
The cap on concessional contributions will rise from $27,500 to $30,000. This allows you to contribute more money into your superannuation at the concessional tax rate.
If your total superannuation balance at 30 June 2024 is less than $500,000, you may be eligible to carry forward the unused portion of your concessional contribution cap that has accrued since 1 July 2019. Please check your My Gov account for the amount available or consult with your accountant.
- Non-Concessional Contribution Cap Adjustment:
The non-concessional contribution cap will see an increase from $110,000 to $120,000 per financial year – with the bring-forward arrangements allowing up to $360,000 over three years if triggered after 1 July 2024.
A non-concessional contribution can only be added if your total superannuation balance is less than $1.9 million on 30 June 2024. The bring-forward amount is reduced if your total superannuation balance exceeds $1.66 million on 30 June 2024.
- Superannuation Guarantee Rate Increase:
Employers will be required to contribute more to employee super funds, with the Superannuation Guarantee rate going up from 11% to 11.5%.
These changes signify the government’s commitment to ensuring that Australians have sufficient funds for their retirement. We encourage you to review your superannuation strategies and consider how these changes could impact your long-term savings plans.
If you need assistance with advice to navigate these changes, please contact us on 5445 3441 to arrange an appointment.
Best regards
Paul Brown & Kylie Waugh
Disclaimer:
This article is intended for informational purposes only and should not be considered as financial advice. Please consult a professional financial adviser for advice tailored to your specific circumstances.
