Super rates and thresholds are increasing
The super guarantee (SG) rate is increasing
Currently at 11%, the SG rate is scheduled to increase to 11.5% from 1 July 2024, and then 12% from 1 July 2025.
Contribution caps are increasing
Linked to the Average Weekly Ordinary Time Earnings (AWOTE) index, contributions caps are increasing from 1 July 2024.
- Concessional (before tax) contribution cap – will increase from $27,500 to $30,000.
- Non-concessional (after tax) contribution cap – will increase from $110,000 to $120,000.
- Maximum non-concessional cap available, under the bring-forward arrangement, will increase from $330,000 to $360,000.
- Total Superannuation Balance (TSB) thresholds, used to work out the maximum amount of non-concessional contributions that can be brought forward, will also be adjusted as shown in the table below:
| Total Superannuation Balance at 30 June 2024 | Maximum non-concessional cap available | Bring forward period |
|---|---|---|
| Less than $1.66 million | $360,000 | 3 years |
| Greater than or equal to $1.66 million and less than $1.78 million | $240,000 | 2 years |
| Greater than or equal to $1.78 million and less than $1.9 million | $120,000 | 1 year |
| $1.9 million or higher | $0 | N/A |
Other caps and thresholds that will be increasing include:
- The eligibility thresholds for government super co-contributions
- Redundancy tax-free thresholds
- The super guarantee maximum contribution base
2024-25 Federal Budget
Treasurer Jim Chalmers delivered the government’s 2024-25 Federal Budget on Tuesday 14 May. Read our summary of the announced superannuation measures here.
Make the most of your concessional contribution cap before 1 July
If it makes sense for you financially, making extra contributions to your super, up to your concessional contributions cap, can help you save more of your overall income and build your savings for retirement tax effectively. That’s because concessional contributions are generally taxed at a rate of 15%,1 which depending on what you earn could be lower than the tax you pay on income, which could be up to 47% (including 2% Medicare levy). Keep in mind that you can’t access your super until you meet a condition of release, like reaching age 65.
The concessional contribution cap is based on the financial year in which the contributions are received, not when they are initiated. Please note the last business day for the 2023-24 financial year for contributions to be received is Friday 28 June 2024. Any contribution received after 1 July will be allocated to the 2024-25 financial year. Please allow for bank processing times when making any contributions.
EOFY super strategies
ART’s super experts recently presented a webinar discussing how you could save on tax by adding to your super. You can watch the recording here.
How to contribute
To make extra concessional contributions to your super you could:
- ask your employer to set up a salary sacrifice arrangement
- make a personal contribution and tell us you want to claim a deduction before 30 June or before you lodge your tax return, whichever is earlier. You can find more information on the steps to follow here.
1. If your income plus concessional contributions is more than $250,000 per year, the ATO will apply an extra 15% tax to some or all of you concessional contributions.