As we start the new financial year, significant changes will be made to Australian superannuation. These updates are set to impact how Australians save for retirement. This article will guide you through the key updates and how they might affect your retirement planning.
Superannuation Guarantee Increase
For most people, superannuation contributions come from their employer. Your employer pays a percentage of your income into your super account, which is called a Superannuation Guarantee (SG).
From 1 July 2024, the SG rate will increase from 11% to 11.5%. This change means employers must contribute an additional 0.5% to their employees' superannuation funds. This is part of the government's strategy to gradually increase the SG to 12% by July 2025, aiming to boost retirement savings for Australian workers.
Learn more about how super works.
Adjustments to Contribution Caps
Adjustments to the super contribution caps for both concessional (pre-tax) and non-concessional (after-tax) will be made starting 1 July 2024. These changes are designed to allow individuals to make extra contributions to superannuation accounts. Review these adjustments to see if you can further boost your super savings for retirement.
The concessional and non-concessional contribution caps are summarised below:
| Contribution Caps | 2023-2024 | 2024-2025 |
| Concessional Contributions Cap* | $27,500 | $30,000 |
| Non-Concessional Contributions Cap# | $110,000 | $120,000 |
* Concessional contributions include:
- employer contributions (including contributions made under a salary sacrifice arrangement)
- personal contributions claimed as a tax deduction.
#Non-concessional contributions include personal contributions for which you do not claim an income tax deduction.
Bring Forward Rule
As the non-concessional contributions limit is increasing to $120,000 from 1 July 2024, the bring-forward rule will also change. The rule allows you to make up to 3 years’ non-concessional contributions in a single financial year (eligibility conditions apply).
| Contribution Caps | 2023-2024 | 2024-2025 |
| Bring forward Non-Concessional Cap | $330,000 over 3 financial years | $360,000 over 3 financial years |
To find out more about the bring forward rule and eligibility criteria, call us on 1300 13 44 33 to book an appointment to speak with one of our superannuation experts, or complete our online form.
Government’s Super Co-contribution Scheme
Another update is the adjustment to the government’s super co-contribution scheme. This scheme is designed to help eligible low to middle-income earners boost their super savings.
| Year | Maximum entitlement | Lower income threshold | Higher income threshold |
| 2024-25 | $500 | $45,400 | $60,400 |
| 2023-24 | $500 | $43,445 | $58,445 |
If you are eligible and make personal contributions during the financial year, the government will pay a super co-contribution. Visit the ATO website to find out if you are eligible or call us on 1300 13 44 33 to learn more.
How to Prepare for These Changes
Review Your Super Contributions
With the increase in the SG rate, now is an excellent time to review your contributions. Check you are getting paid the new SG rate of 11.5% and consider whether you can use the higher concessional contribution caps to boost your super balance, or take advantage of the Government’s co-contribution scheme.
If you’re an REI Super member, you can download our App to review your most recent super payments and balance, or simply login to your online account here now.
We also recommend checking your pay slips to see that you’re being paid super at the new SG rate of 11.5% after July. (Your employers may pay super each quarter, rather than each pay cycle, so you may not see an increase in your contribution until after the end of September 2024.).
Understand the Impact on Your Retirement Planning
These changes to superannuation could have significant implications for your retirement planning. Understand how these changes might affect your retirement outcomes by keeping yourself informed.
By staying informed and proactive, you could position yourself to make the most of these changes. With the right strategy, you could turn these updates into opportunities to enhance your retirement readiness.
Seeking professional advice on the complexity of superannuation rules can be invaluable. The right advice at the right time can make a big difference.
Got a super or retirement question?
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Whether it’s choosing the right investment options, finding the best way to make additional contributions, insurance advice, fund performance or retirement options, REI Super members have access to it all. Good advice is easy to find. Call us today on 1300 13 44 33.
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The information contained in this article does not constitute financial product advice. REI Super does not give any warranty to the accuracy, completeness or currency of the information provided. Although REI Super makes every reasonable effort to maintain current and accurate information, you should be aware that there is still the possibility of inadvertent errors and technical inaccuracies. REI Superannuation Fund Pty Ltd ABN 68 056 044 770, AFSL 240569, RSE L0000314 Trustee of REI Super (ABN 76 641 658 449), SPIN REI0001AU, RSE R1000412. MySuper unique identifier 76641658449129. July 2024.