The new superannuation contribution caps introduced from 1 July 2024 have provided the opportune time for taxpayers to strategise on how they can maximise their superannuation.
From 1 July 2024, the contribution caps are increased to:
- Concessional contribution cap $30,000
- Non-concessional contribution cap $120,000
This also means the maximum non-concessional contribution (NCC) that can be made under the ‘bring forward’ provisions will increase to $360,000. The general transfer balance cap will remain at $1.9m on 1 July 2024, which limits the amount that can be converted into retirement phase pension accounts. This cap is also used to determine eligibility to make non-concessional contributions, which is based on an individual’s Total Superannuation Balance (TSB) at the end of the previous financial year.
From 1 July 2024, the new bring forward thresholds will be as follows (assuming the bring forward period has not already been triggered):
|
TSB at 30 June 2024
|
Maximum NCC
|
Bring forward period
|
|
<$1,660,000
|
$360,000
|
3 years
|
|
<$1,780,000
|
$240,000
|
2 years
|
|
<$1,900,000
|
$120,000
|
No bring forward
|
|
>$1,900,000
|
Nil
|
Not applicable
|
Should your Total Superannuation Balance be less than $500,000 (as of 1 July 2023), this is the last opportunity to catch up your concessional contributions using any unused carry forward amounts from the financial year ended 30 June 2019. The carry forward provisions began in the financial year ended 30 June 2019 and carry forward for 5 years. This can be a tax effective strategy for those looking to top up their superannuation or in assisting children to do the same.
While we await the finalised legislation on Div 296 – the tax imposed on balances greater than $3m – there has never been a better time to seek advice on your superannuation planning.
If you would like to discuss the best strategy to achieve your family goals with the new contribution caps introduced, please don’t hesitate to contact our team.
Learn more about how our Superannuation and SMSF services can help you
The above information is provided as an information service only and, therefore, does not constitute financial product advice and should not be relied upon as financial product advice. None of the information provided takes into account your personal objectives, financial situation or needs. You must determine whether the information is appropriate in terms of your particular circumstances. For financial product advice that takes account of your particular objectives, financial situation or needs, you should consider seeking financial advice from an Australian Financial Services licensee before making a financial decision in relation to any of the matters discussed.
