On 1 July 2024, superannuation is changing for Australians. Here’s what you need to know.
You’ll start receiving more super
The Super Guarantee is the percentage amount of your salary your employer must pay to your super fund on your behalf.
From 1 July 2024 the Super Guarantee is rising from 11% to 11.5%.
It’s legislated to rise by 0.5% each financial year until it reaches 12%.
This means that your employer will be contributing more super on your behalf.
Tip: Not sure where your super is? Here’s how to find and check your super.
Super contribution caps are changing
There are two types of super contributions - concessional, and non-concessional - and they both have annual limits.
Concessional contributions come out of your pre-tax income, and include the super your employer pays on your behalf, and super you salary sacrifice.
The concessional contributions limit is increasing from $27,500 to $30,000 from 1 July 2024.
Non-concessional contributions are made from your after-tax income, and can also include spousal contributions (as long as your spouse is not your employer).
The non-concessional contributions cap is increasing from $110,000 to $120,000 from 1 July 2024.
Which means the carry-forward and bring-forward contributions rules are changing, too
The carry-forward rule
If you haven’t exceeded the concessional contributions cap in any of the preceding five years, you can make extra concessional payments until you meet the balance.
It’s called the carry-forward rule, and it helps you catch up or boost your super if your circumstances allow it, so long as your total super balance the year before was less than $500,000.
You can find out more at the Australian Tax Office website.
To find out how much you may be able to carry forward, log into the ATO online, then select Super, then Information, then Carry forward concessional contributions.
The bring-forward rule
This works in much the same way. You can make up to a total of 3 years’ worth of non-concessional contributions in one year, so long as you meet eligibility criteria.
Because the non-concessional contributions cap is changing, the total amount you can bring-forward is increasing, too.
Find out more at the ATO website.
