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Superannuation contribution caps set to increase from 1 July 2024

By April 30, 2024No Comments

The Government previously announced some key changes to the superannuation contribution caps that take effect from the start of the new financial year, on 1 July 2024.

Concessional contributions

The concessional contribution cap which applies to any personal, employer and salary sacrifice contributions claimed as a tax deduction, will increase from $27,500 to $30,000.

This means that if you are contributing money into your superannuation fund you can reduce your taxable income by contributing more into your superannuation.

Non-concessional contributions

For the first time in three years, the non-concessional contributions cap has been raised from $110,000 to $120,000 from July 1 this year.

The non-concessional contributions relate to money that you have already paid tax on that may be sitting in your bank account or from an inheritance. You can add to your superannuation fund balance and these contributions do not attract any tax when the money is received by your superannuation fund.

Non-concessional contributions and the bring forward rule

The increase in the non-concessional contributions cap effectively means that the bring forward rules will be increased from $330,000 to $360,000 (3 x $120,000).

This is where you can bring forward the next two financial years and contribute $360,000 in one year.

It is important to note that:

  • You are not permitted to make any additional non-concessional contributions during the following two financial years that you make the contribution.
  • You must be under the age of 75 at the start of the financial year in which you make a contribution if you wish to take advantage of this bring forward rule.

If you would like to discuss any of the above, please contact your adviser or call the office to speak with one of the team.

Article by Doug Henderson, Senior Financial Adviser at Treysta Wealth.

Disclaimer: any information we share is general in nature and does not take into account your personal situation. You should consider if the information is appropriate for your needs and, where appropriate, seek professional advice.

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