What's changed in super from 1 July 2024
There are several changes to super rules that came into effect from 1 July 2024 that may help grow your retirement savings.
Christine Atencia, a CERTIFIED FINANCIAL PLANNER® at Nexia Sydney highlights these changes below.
SG increase from 11% to 11.5%
From 1 July, Superannuation Guarantee (SG) contributions increased from 11 to 11.5% of your ordinary time earnings. SG contributions are the compulsory payments your employer pays into your super, and the increase to 11.5% helps Australians save more for their retirement. SG contributions are scheduled to increase again on 1 July 2025 to 12%.
Contribution caps increase
From 1 July 2024, the amount of extra contributions you can make to your super has also increased. If you go over these limits (caps), you may have to pay extra tax.
- Concessional (before-tax) contributions:
From 1 July 2024, the amount you can add to your super before-tax (for example, through salary sacrifice contributions) increased from $27,500 to $30,000 per year.
- Non-concessional (after-tax) contributions:
From 1 July 2024, the amount you can add to your super after-tax increased from $110,000 per year to $120,000 per year.
This change also affects the amounts you can ‘bring forward’ (make after-tax contributions up to 3 times the annual cap over a 3-year period) and the total super balance thresholds that apply. (You need to be aged 74 years and under to take advantage of the bring-forward rule).
|
Total super balance at 30 June 2024 |
Contribution and bring-forward amount available |
|
Less than $1.66 million |
3 years (3 x $120,000 = $360,000) |
|
$1.66 million - $1.78 million |
2 years (2 x $120,000 = $240,000) |
|
$1.78 million - $1.9 million |
1 year (1 x $120,000 = $120,000) |
|
More than $1.9 million |
Nil |
Carry forward contributions
These types of contributions allow you to carry forward unused concessional cap amounts and apply them to increase your cap in later years.
Eligibility
- have Total Superannuation Balance of less than $500,000 at 30 June of previous financial year
- have unused concessional cap amounts in any of 5 previous financial years
This is a great way to increase your balance, particularly if you have had previous years where you did not make full use of your caps (e.g. sabbatical, part-time employment, etc).
Would you like to discuss your super?
If you would like to discuss how any of the changes may impact your super, why not reach out to Christine for a chat.
Christine believes that every client’s solution should be as unique and individual as they are. As a result, she provides personalised, holistic advice, ensuring her clients are well-informed and confident in their financial decisions. Her focus on tailored strategies is driven by a passion for helping clients reach their goals, particularly time-poor professionals and executives, and high-net worth individuals who understand the importance and the benefits of partnering with clients’ goals.
Christine also specialises in providing advice to female and C-suite executives, as well as advice on ethical, sustainable and responsible investing – reflecting her belief in the importance of aligning financial strategies with personal values.
