Changes to Superannuation Contribution Caps from 1 July 2024
For the first time in three years, both the concessional and non-concessional caps will increase on 1 July 2024.
As a result, from 1 July 2024:
-
Concessional Contributions – The concessional contribution limit, which includes employer and salary-sacrificed contributions as well as personal contributions claimed as a tax deduction, will increase from $27,500 to $30,000. This adjustment allows individuals to reduce their taxable income by contributing additional funds to their superannuation.
- Non-Concessional Contributions (NCC) - The non-concessional contribution limit (NCC), which applies to after-tax contributions, will rise from $110,000 to $120,000. This adjustment enables superannuation fund members to increase their superannuation balance using their after-tax funds, without incurring additional tax.
- Non-Concessional Contribution Bring Forward Rule - The maximum non-concessional cap available, under the non-concessional contribution bring-forward provisions, will increase from $330,000 to $360,000. The change in this rule does not apply to individuals who have triggered the bring forward rule in Financial Year 2023 or Financial Year 2024.
- Total Superannuation Balance - The Total Superannuation Balance thresholds, used to determine the maximum amount of bring-forward non-concessional contributions available to an individual, will also be adjusted as per the below table.
The non-concessional contribution caps and threshold are summarised in the table below:
|
It's important to note that while higher caps can be beneficial, individuals should consider their overall financial situation to understand how these changes impact their retirement planning goals and tax position.
Should you wish to arrange a meeting to discuss these changes and how they impact your personal situation, please don’t hesitate to contact our Wealth Advisory team on 03 9325 6300 or info@matsteer.com.au.