For the 2024–25 financial year, the contribution cap for superannuation will be indexed based on the updated Average Weekly Ordinary Time Earnings (AWOTE), in line with the latest Australian Bureau of Statistics (ABS) released in November 2023. This adjustment aligns with the implementation of Stage 3 Tax Cuts and will bring potential tax benefits by making additional contributions to the super fund.
From 1 July 2024, the upper limits for Concessional Contribution (pre-tax) and Non-concessional Contribution (post-tax) will be increased to $30,000 and $120,000 respectively, representing an increase from the previous limits of $27,500 and $110,000.
Since 1 July 2018, the “Carry-forward provisions” super rule allows individuals to make up to five years of unused concessional catch-up contributions in a single year, provided certain conditions are met. The total allowance under the Carry-forward provisions will be increased from $157,500 to $162,500 during a single financial year.
The “Bring-forward arrangement” allows you to bring forward the equivalent of 1 or 2 years of your annual non-concessional contributions cap from future years, if eligible. This means you can make non-concessional contributions up to 2 or 3 times the annual cap amount in the first year of the bring-forward period. The total allowance under Bring Forward Provisions will also be increased from $330,000 to $360,000 during a single financial year. Restrictions may apply if your Total Super Balance (TSB) is more than 1.9 million or you’ve already implemented a Bring-forward arrangement in FY2024/FY2023.
The general Transfer Balance Cap will remain at $1.9 million for 2024-25 due to insufficient CPI increase.
If you have any concerns or questions in relation to those changes, please contact our office.
