The superannuation contributions caps for concessional and non-concessional contributions will increase on 01/07/2024 which is the start of the 2025 financial year. The government has announced these latest figures in an effort to keep up with the cost of living crisis including rising inflation and increases in the super guarantee charge (“SGC”) rate to 11.5%.
Concessional Contributions
From 1 July 2024, concessional contributions will increase from $27,500 to $30,000. In order to claim a tax deduction for a concessional contribution it is important to note that the SCG rate – also known as mandatory employer contributions – are also included in your concessional contributions. For example,. If your salary is $100,000, the SGC amount is $11,500 calculated at a rate of 11.5% (100,000×11.5%) = 11,500.
Non-Concessional Contributions
Non-Concessional contributions will increase to from $110,000 to $120,000. The bring forward arrangement for non-concessional contributions will also increase on 01/07/2024 to $360,000.
A reminder that your total superannuation balance must be below $1.9 million in order to make non-concessional contributions. This limit has not increased this time.
We note the Stage 3 tax cuts which have passed parliament also commence from 01/07/2024 meaning individuals may have more disposable income to contribute to Superannuation.
Disclaimer – The content has been prepared by Redwood Advisory Pty Ltd without taking account of the objectives, financial situation or needs of a particular individual and does not constitute financial product advice. This article should not be considered personal financial advice as it is intended to provide factual information only.
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