04/07/2024
A New Financial Year has brought new rules and limits around super contributions 🌱⭐️📈
The Super Guarantee (SG) rate has increased to 11.5% (from 11%), this means employers must contribute a higher percentage of their employees’ earnings into their respective super funds. Whilst this may be a small increase (additional $500 pa for an employee on a $100,000 wage), over the long term, this can have a big difference on your super balance at retirement ✈️🎇🚌🎈
Concessional Contributions are tax deductible contributions. This can be achieved through salary sacrifice via your employer or voluntary contributions from your personal funds. The cap for the 2025FY has increased to $30,000 – this includes employer contributions (SG). Concessional contributions are taxed at 15% in your super fund, please check with your adviser or accountant before making voluntary contributions to ensure you are deriving a net tax benefit 💰📆📝👨💻
Non-concessional contributions are after-tax contributions, meaning you do not derive a tax benefit. These contributions are often used to boost your super balance for retirement. If you are accessing the bring-forward rule, you can now contribute up to $360,000 📊💸⚖️
Breaching the concessional or non-concessional cap can lead to high tax penalties! It is vital to check how much you have already contributed and expect to contribute over the financial year. This is general information only and has not taken into account your personal circumstances, tax position, current super balance OR age. We recommend speaking to your financial adviser prior making additional contributions.
