Super contributions are set to rise in the next financial year.
The six monthly average weekly ordinary time earnings (AWOTE) were released on February 22, indicating that concessional and non-concessional contributions caps will be increasing effective from 1 July 2024.
These include:
The concessional contribution cap will increase from $27,500 to $30,000.
Concessional contributions are pre-tax contributions that include super guarantee contributions, personal deductible contributions and salary sacrificed contributions where a tax deduction is claimed.
Essentially, if you make any pre-tax contributions, the increased cap could mean a bigger tax saving and deduction.
The non-concessional contribution cap will increase from $110,000 to $120,000.
The ‘NCC’ cap is applicable to personal non-deductible contributions. Your total superannuation balance determines if you are eligible to make non-concessional contributions.
Under the bring-forward provisions, the increase will be from $330,000 to $360,000, providing it’s triggered on July 1 2024.
As a result of the increase in the NCC cap, the maximum available cap under the three-year bring forward provisions will increase the maximum non-concessional cap available. Your TSB will also determine your eligibility to use the bring forward rule.
The total superannuation balance threshold for being able to make non-concessional contributions will remain at $1.9 million for the financial year, as will the pension general transfer balance cap.
Here’s a basic summary of the changes in superannuation contribution heading into the new financial year
If you have any questions about the changes to superannuations contributions or how they may effect you, please reach out to to Wealth Architects.
The team can help you with any queries and how these changes can maximise your potential benefits through your super strategy.
