Superannuation changes from 1st July 2024

The end of the financial year is approaching when a number of key superannuation rules will change. The following are 5 that may affect your financial planning position.

Super Guarantee

This is the amount your employer must put into your nominated super fund. On 1st July it will increase from 11.0% of your salary to 11.5%. It’s important to check your salary sacrifice arrangements or personal contributions to make sure you do not exceed the new cap outlined below.

Concessional Contributions

These are pre-tax contributions you can make to super, to minimise your income tax and quickly build your super. The current Concessional cap is $27,500 per annum and this is moving to $30,000 per annum on 1st July this year. Some people have carry-forward contribution amounts and if you do, we can help you with this change.

Non-Concessional Contributions

Anyone under the age of 75 can make after tax contributions to their super fund, as long as the total balance after the contribution remains below the Total Super Balance (TSB) which is currently $1.9million. What are your plans for retirement and are you taking advantage of this?

Transfer Balance Cap

The current amount that can be transferred from superannuation in accumulation phase to retirement (account-based pension phase) remains at $1.9million. There is no change to this limit after the 1st July 2024.

Minimum Account Based Pension withdrawals

In Covid the government halved the required minimum account-based pension income stream levels for retirees. The percentage amounts have gone back to normal and are outlined in the Table below. Minimum income stream payments increase with age as the government want you to spend your money. It is worth checking your pension income with your Adviser to ensure it meets your needs. If you have concerns or need further explanation on how this works, please get in touch, we are happy to assist.