As we approach a new financial year, it's a good time to get on top of significant changes that could affect your superannuation contributions and retirement strategies. From super boosts to tax cuts, here’s some key changes from 1 July 2024 you should know.
Employer super contributions on the rise
For most employees, it’s good news for our nest eggs as the Super Guarantee (SG) rate increases from 11% to 11.5%. More mandatory employer super contributions and more money in your super account, compounding over time contributes towards helping you save more for retirement.
Contribution caps are increasing
For the first time in three years, the government has increased the contribution caps. This is the limit on how much money you can contribute to your super each financial year.
| Concessional (pre-tax) contributions |
$27,500 |
$30,000 |
| Non-concessional (post-tax) contributions |
$110,000 |
$120,000 |
Positive impact on carry-forward and bring-forward rules
These contribution cap increases don't just raise the ceiling for annual contributions – they also expand the potential for using both the ‘carry-forward’ and ‘bring-forward’ rules.
Here’s a quick summary of the changes from 1 July 2024:
- Using the carry-forward rule, the concessional contribution cap could go up to maximum of $162,500, if eligible.
- Using the bring-forward rule, the non-concessional contribution cap could go up to a maximum of $360,000, if eligible.
Note that this doesn't apply to members who have previously activated the bring-forward rule and are still within that period.
How do these contribution cap changes impact retirement strategies?
- Contributions: Individuals can reassess how much they can contribute into super to maximise tax concessions.
- Transition to Retirement (TTR): If over age 60, using a TTR pension can help increase your super contributions and can potentially save on tax while boosting your retirement savings.
For example, adopting a TTR strategy may allow you to draw a pension from your super while continuing to work, potentially reducing your overall tax bill and funneling more into your super.
Preservation age will now be 60 for everyone
From 1 July 2024, the preservation age to access your super will become 60 for everyone.
An added bonus: Tax cuts
The positive news extends beyond superannuation. From 1 July 2024, the government aims to simplify the tax system and provide relief to taxpayers (especially those who are low and middle-income earners) by lowering the tax withheld from their take-home pay each week. Take a look at the table below for the new rates:
| Thresholds ($) |
Rates (%) |
Thresholds ($) |
Rates (%) |
| 0 – 18,200 |
Tax free |
0 – 18,200 |
Tax free |
| 18,201 – 45,000 |
19 |
18,201 – 45,000 |
16 |
| 45,001 – 120,000 |
32.5 |
45,001 – 135,000 |
30 |
| 120,001 – 180,000 |
37 |
135,001 – 190,000 |
37 |
| Over 180,000 |
45 |
Over 190,000 |
45 |
"The positive impacts of these superannuation changes offer our members a great opportunity to maximise their retirement savings, particularly by taking advantage of increased contribution caps. Coupled with good simple financial advice, which is offered to Rest members at no additional cost, these changes can really impact a member’s retirement outcome”.
~ Greg Fleming, Head of Advice Delivery
Interested in learning more about Rest Advice?
Interested in learning more about Rest Advice? From digital to phone advice, explore your options to see what you can do to help your super today. Simple contributions advice is usually provided to our members at no additional cost.
Rest Super and TTR Pension are issued by Retail Employees Superannuation Pty Ltd. Before deciding to join or stay, consider the PDS and TMD at rest.com.au/pds. Any advice provided is general and may not be appropriate for you.
