What you need to know about changes to superannuation from 1 July 2024
The new financial year is now upon us! Whether you are in business or an employee, you will be affected by the changes to superannuation rates and caps from 1 July 2024.
Superannuation Guarantee
The Superannuation Guarantee rate will increase from 11% to 11.5% from 1 July 2024, meaning for most employers, the cost of employment will increase by at least 0.5%.
Period | To 30 June 2024 | From 1 July 2024 |
Superannuation Guarantee Rate | 11% | 11.5% |
The Superannuation Guarantee rate is scheduled to increase to 12% from 1 July 2025.
A reminder of superannuation guarantee payment due dates:
Period | Payment due to be received by members fund |
June 2024 quarter | 28 July 2024 |
September 2024 quarter | 28 October 2024 |
December 2024 quarter | 28 January 2025 |
March 2025 quarter | 28 April 2025 |
June 2025 quarter | 28 July 2025 |
Contribution cap increases
The concessional and non-concessional superannuation caps will also increase from 1 July 2024. The concessional (deductible) contributions cap will increase in line with indexation from $27,500 per financial year to $30,000, as will the non-concessional contributions cap which will increase from $110,000 per financial year to $120,000 from 1 July 2024.
Period | To 30 June 2024 | From 1 July 2024 |
Concessional Contribution Cap* | $27,500.00 | $30,000.00 |
Non-Concessional Contribution Cap ^ | $110,000.00 | $120,000.00 |
* Note: Where a member has a total superannuation balance below $500,000 as at 30 June 2024, they may be able to access their unused carry-forward concessional contributions and contribute additional concessional amounts into their super fund.
^ Note: Non-Concessional Contribution cap subject to total member balance as at 30 June 2024.
Transfer Balance Cap
Whilst the contribution caps have increased in line with indexation, the Transfer Balance Cap (TBC) will remain unchanged at $1.9 million per member. This represents the maximum amount of assets a member can hold in a tax-free pension account within their superannuation fund. Earnings on assets in excess of their TBC are taxed at 15%.
Division 293 tax income threshold
There is no change to the income threshold for Division 293 tax purposes, which remains unchanged at $250,000 adjusted taxable income. Where a taxpayer derives adjusted taxable income above $250,000, the concessional contributions received by a members fund may be taxed an additional 15%.
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