May 14 2024
Member News

Federal Budget 2024

May 14 2024, the date of the Federal Budget circled on a calendar

This year’s Federal Budget has landed, and here are the changes we know about super. 

Super to be paid on Commonwealth Parental Leave Pay Scheme

Earlier this year, the Australian Government announced its commitment to include superannuation contributions on the Commonwealth Parental Leave Pay scheme. The latest Federal Budget for 2024 confirmed that this reform will commence as of 1 July 2025. The expected cost of this has been estimated at $1.1 billion over four years.

This announcement is a significant win in the ongoing battle to close the gender super gap. In fact, modelling1 shows that a mother of two children who received super on the Commonwealth Parental Leave Pay scheme will be $14,500 better off in retirement.

Further, while taking time out of paid work for childcare is commonplace for both parents, women still currently use the majority (88%) of primary care leave2. Paying super on the Commonwealth Parental Leave Pay scheme will help to close the gender super gap. 

Payday super is on the horizon

In the previous Federal Budget, the Government announced new payday super reforms. The Government was expected to release the final design of payday super in the latest Federal Budget, however no announcement was made. These proposed reforms are still expected to come into effect 1 July 2026.

Beyond the Budget: Updates to know for 1 July 2024

Super Guarantee will increase to 11.5%

From 1 July 2024, the Super Guarantee (SG) rate will increase to 11.5% as planned. The SG rate will continue to rise by 0.5 percent each year until it reaches 12% by 1 July 2025. Put simply, this means more will be going towards your super in the next financial year.

Changes to contribution concession caps

If you’re one of the many people who make extra contributions into your super, you’ll be pleased to know that contribution caps will be increasing. For the first time in three years, the limit to how much you may contribute to your super each financial year will be rising from 1 July 2024.

Contribution types 2023-24 cap Expected cap from 1 July 2024
Concessional (pre-tax) contributions $27,500 $30,000
Non-concessional (post-tax) contributions $110,000 $120,000
Contribution types Concessional (pre-tax) contributions
2023-24 cap $27,500
Expected cap from 1 July 2024 $30,000
Contribution types Non-concessional (post-tax) contributions
2023-24 cap $110,000
Expected cap from 1 July 2024 $120,000

This also means changes for carry-forward and bring-forward rules:

  • Carry-forward rule: the concessional contribution cap could go up to maximum of $162,500, if eligible.
  • Bring-forward rule: the non-concessional contribution cap could go up to a maximum of $360,000, if eligible.

1 Securing a dignified retirement for more women, Super Members Council of Australia, December 2023. 

2 WGEA Gender Equality Scorecard 2022-23, Workplace Gender Equality Agency (WGEA)

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