A number of changes to commence from 1 July 2024 are set to be good news for your super balance. So how do these changes affect you? We outline the changes below and how you will benefit.
Super guarantee is the minimum percentage of your earnings that your employer is required to pay to your super fund.
From 1 July 2024, the minimum super guarantee rate will increase from 11% to 11.5%. And from 1 July 2025, there will be a further 0.5% increase in the amount of super guarantee contributions your employer pays to your super fund taking it to 12%.
The concessional contribution cap limits the amount you can contribute to your super fund each financial year. Concessional contributions include all employer contributions (super guarantee and salary sacrifice arrangements) and voluntary personal contributions that you claim as a tax deduction in your personal income tax return. Non-concessional contributions are generally voluntary contributions where no tax deduction is claimed.
From 1 July 2024, the concessional contribution cap will increase from $27,500 to $30,000 per financial year. The non-concessional cap will also increase from $110,000 to $120,000 per financial year.
The increase in the contribution caps will allow you and/or your employer to deposit additional contributions into your super fund to boost your retirement savings.