1 July 2024 changes to super
June 27, 2024
Several changes to super are coming into effect on 1 July 2024. Here’s a summary of how they may impact you.
Government co-contribution
The government co-contribution scheme is an incentive to encourage Australians to contribute to their super on a post-tax basis. If eligible, you could receive an additional contribution to your super from the government. The maximum government super co-contribution entitlement remains at $500, however the lower-income threshold increases to $45,400 and the higher-income threshold increases to $60,400.Increase in the Superannuation Guarantee
The contributions that your employer is required to make into your super fund, the Superannuation Guarantee (SG), will rise from the current rate of 11% to 11.5% from 1 July 2024. A higher SG rate means potentially greater savings for your retirement.Increase to Contribution Caps
Due to indexation, the concessional cap will increase to $30,000 per year (up from $27,500), while the non-concessional cap will increase to $120,000 per year (up from $110,000) from 1 July 2024.
The increase to the non-concessional cap also affects the bring-forward rule over 3 years. The ‘total superannuation balance’ threshold for making non-concessional contributions will remain at $1.9 million for 2024-25.
Increase to maximum contribution base
The 'maximum contribution base' is $65,070 (up from $62,270) per quarter for 2024-25. If your earnings exceed this amount for the quarter, your employer does not need to pay SG contributions on your earnings above this limit.