CONTRIBUTION CAPS 2024
The Federal government have announced that there will be an increase in the standard concessional and non-concessional contribution caps from 1 July 2024
The changes to the concessional and non-concessional caps were expected given the high inflation over the last few years. These increased contribution caps alongside the stage three tax cuts applying from 1 July 2024, will mean some individuals have additional disposable income which they could contribute to super, both taking advantage of tax-deductible concessional contributions and the non-concessional contributions.
From 1 July 2024, the contribution caps will increase as follows:
- The standard concessional contribution cap will increase from $27,500 to $30,000
- the non-concessional contribution cap which is expressed as four times the standard concessional contribution cap will also increase from $110,000 to $120,000.
This also means that the maximum available, under the non-concessional contribution bring-forward provisions, will increase from $330,000 to $360,000. Those who have already commenced a bring forward position will need to wait for the end of that period to access the additional cap.
Additionally, from 1 July 2024, the Total Superannuation Balance thresholds used to determine the maximum amount of bring-forward non-concessional contributions available to an individual will also be adjusted to cater for the increased caps.
The changes in the contribution’s caps may create some additional tax planning and overall asset and wealth creation opportunities for some taxpayers. Book in a consultation with Karen to discuss how making use of these increased caps can benefit you and assist you in getting additional income into your superannuation fund, thereby increasing your net asset position in a low tax environment.
You can read more about this on: Contributions caps | Australian Taxation Office (ato.gov.au)