Blog Layout

Rise in Superannuation Contribution Caps from July 1, 2024

Australia's superannuation contribution caps are set to increase for the first time in three years, giving individuals a significant opportunity to boost their retirement savings. Effective from July 1, 2024, the concessional contribution cap will rise from $27,500 to $30,000, while the non-concessional contribution cap will increase from $110,000 to $120,000.

In this article, we’ll explore what this change means for you and your future financial security.

Understanding concessional vs. non-concessional contributions.

Concessional contributions

These are typically made through salary sacrifice arrangements or by employers as part of the Superannuation Guarantee. They are taxed at a concessional rate, making them an attractive option for individuals looking to minimise their tax liabilities while growing their retirement savings.

Non-concessional contributions

Made with after-tax money, non-concessional contributions do not provide immediate tax deductions. However, they allow you to maximise your retirement savings within superannuation's tax-friendly environment.

Two key benefits of the changes.

Turbocharge tour retirement savings: Non-concessional contributions enable you to bring up to three years' worth of contributions into a single financial year. This "bring forward" rule allows you to contribute a lump sum to your superannuation, perfect for those who receive large payouts from asset sales or inheritances.
New limits: Under the new rules, you can contribute up to $360,000 from July 1, up from the previous $330,000 limit if you fully utilise the bring-forward provision.

Something to keep in mind…

Balance limitations still exist. If you have more than $1.9 million in superannuation, non-concessional contributions will be off-limits. Additionally, restrictions apply to the bring-forward rule if you have a super balance exceeding $1.68 million ($1.66 million next year).

Maximising Your Contributions

For those aiming to make the most of these increased caps, consider making a $110,000 contribution before June 30 and then adding a further $360,000 from July 1. This approach allows you to maximise your retirement savings potential within the concessional framework. Please note, you may need to review any salary sacrifice arrangements in place so that you can take advantage of the new $30,000 cap. If you need support doing any of this, just ask us.

The key takeaway.

These changes present a strategic opportunity to strengthen your retirement savings plan. By understanding the new caps and how they apply to your financial situation, you can make informed decisions that will help you enjoy a more comfortable retirement. To ensure your contributions align with your long-term goals and the current regulatory framework, contact us!

< Older Post Newer Post >

Need help with your accounting?

Find Out What We Do

Why Public Liability Insurance is Essential for Your Business

March 14, 2025

If your business interacts with the public — whether through customers, suppliers, events, or onsite work — public liability insurance can protect you against claims for injury or property damage. This generally covers legal costs and compensation, and although it’s not legally required, being sued for negligence can be costly (and bad for your business rep), so it’s highly recommended.

The Challenges & Costs of Exiting a Co-Ownership Property

March 14, 2025

Co-owning a property can be a practical and financially beneficial arrangement, but when circumstances change, sometimes one party needs to jump ship. Whether due to financial strain, health issues, relocation, relationship breakdown, or differing property goals, it’s not uncommon for one co-owner to buy out the other. While this process may seem straightforward, there are several financial and legal considerations to consider.

Expenses to Consider When Selling a Property

March 14, 2025

Most people who sell a property — especially if it’s their first time doing so — are surprised (and frustrated) at how complicated it can be. Expenses (expected and unexpected) are a big part of that — and there are numerous costs throughout the process. These include real estate agent fees, legal expenses, marketing costs, and property preparation. Understanding and anticipating these expenses beforehand can help ensure a smooth and well-prepared road ahead.

Understanding Dividends — Franked & Unfranked

March 14, 2025

As an accounting firm, we understand the importance of structuring investments wisely. One key aspect that investors should carefully manage is their participation in Dividend Reinvestment Plans (DRPs). These plans can be a strategic way to grow an investment portfolio, but they also come with tax and record-keeping responsibilities can’t be overlooked.

Six things to consider when starting a business

February 13, 2025

Thinking of starting a business? Here’s what you need to know! Read our latest blog to learn six key things to consider before starting your business.

Understand tax implications for tax donations

February 13, 2025

Donating to charity is a great way to give back, but did you know not all donations are tax-deductible? To claim a deduction, your donation must be made to a Deductible Gift Recipient (DGR), and can’t receive anything in return. Read our latest blog to learn what you can claim and how to maximise your tax return.