Contribution caps increase from 1 July 2024

Concessional (pre-tax) and non-concessional (post-tax) contribution caps will be lifted by $2,500 and $10,000 a year respectively from 1 July 2024.

Following the release of the latest average wages ordinary times earnings data for the December 2023 quarter, superannuation contribution caps will increase as follows:

• Concessional contributions (CC) cap — $30,000
• Non-concessional contributions (NCC) cap — $120,000
• The maximum NCC cap under the bring forward rules — $360,000.

The total superannuation balance (TSB) thresholds that apply to determine the maximum amount of bring forward NCC available will also be adjusted as follows:

Note, the general transfer balance cap will remain at $1.9m for 2024-25 as CPI was not enough to trigger a $100,000 increase.
 
The increase to the NCC cap under the bring forward rules will not apply to clients who have already triggered the bring forward rule in either this year (2023-24) or last year (2022-23) and are still in their bring forward period. This is because the NCC cap that applies to an individual is calculated with reference to the standard NCC cap when they triggered the bring forward rule in their first year.

As such, clients wanting to maximise their NCCs using the bring forward rule may wish to consider restricting their NCCs this year to $110,000 or less so they do not trigger the bring forward rule this year.

Superannuation is a complex field that many people leave in the ‘too hard basket’. Take charge of your super with help from Baumgartner Financial Services. The sooner the better so your super can grow over a longer period. We can set you on the right path now so, when retirement comes and income from employment ceases, you’ll be prepared.

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