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Following the release of the latest Average Weekly Ordinary Time Earnings (AWOTE) index, the expected increase to the contribution caps from 1 July 2024 has been confirmed.
As a result, from 1 July 2024:
- The standard Concessional contribution cap will increase from $27,500 to $30,0001.
- The Non-concessional contribution cap, which is expressed as 4 times the standard concessional contribution cap, will increase from $110,000 to $120,0002.
- The maximum Non-concessional cap available, under the Non-concessional contribution bring-forward provisions, will increase from $330,000 to $360,0003.
- 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.
The Non-concessional contribution caps and thresholds are summarised in the table below:
| TSB at 30 June 2024 | Maximum available NCC Cap | Maximum available NCC Period |
|---|---|---|
|
< $1.66 Million |
$360,000 |
3 Years |
|
$1.66 - < $1.78 Million |
$240,000 |
2 Years |
|
$1.78 - < $1.9 Million |
$120,000 |
1 Year |
|
$1.9 Million (and above) |
$0 |
N/A |
In addition to the adjusted contribution caps and thresholds outlined above, several other thresholds will also be impacted including:
- the eligibility thresholds for the Superannuation Government Co-Contribution,
- the CGT Contribution cap (which applies following the sale of eligible small business assets),
- the Low-Rate Cap (which applies to the tax treatment of superannuation withdrawals),
- Redundancy tax-free thresholds, and
- The Superannuation Guarantee maximum contribution base.
The General Transfer Balance Cap, which is indexed according to movements in the Consumer Price Index (CPI), had already been confirmed as remaining set to $1.9 Million for the 2024-25 financial year.
1An individual’s personal concessional contribution cap for 2024-25 may be higher if they’re eligible to unlock unused carried forward concessional contribution cap amounts from previous years.
2An individual’s NCC cap in 2024-25 will be NIL where their TSB, measured at 30 June 2024 is $1.9 Million or more. This also applies to individuals who are already in a previously triggered bring-forward period.
3Individual’s
who are already in a previously triggered bring-forward period will not benefit
from the increase in the Non-concessional contribution cap. Their contribution levels
for 2024-25 will be limited to the amount that they had previously locked in.
Written by Fabian Bussoletti, Technical Manager