Superannuation Rates and Thresholds

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Each year, several key superannuation rates and thresholds are indexed in line with movements to Average Weekly Ordinary Time Earnings (AWOTE) or Consumer Price Index (CPI).

Following the release of these key statistics by the Australian Bureau of Statistics (ABS) last month, the thresholds most relevant to superannuation for 2023-24 are set to be as follows:

Key thresholds Current
2022-23		 New
2023-24

Standard concessional contribution cap1
$27,500

$27,500

Standard non-concessional contribution (NCC) cap2
$110,000

$110,000
CGT cap amount
$1,650,000

$1,705,000

Government Co-contribution3

  • Lower threshold
  • Upper threshold


$42,016

$57,016

 

$43,445

$58,445

General Transfer Balance Cap (TBC)4
$1,700,000

$1,900,000
Low-rate cap amount
$230,000

$235,000

Based on an individual’s Total Superannuation Balance (TSB), as measured on 30 June 2023, an individual under the age of 75 on 1 July 2023, may be able to trigger a bring-forward period permitting an increased NCC amount to be made during the 2023-24 financial year, as follows:

TSB at 30 June 2023 Available NCC Cap
in 2023-24*		 Maximum NCC Cap
available
< $1.68 Million
$330,000
3 years
$1.68 Million - < $1.79 Million
$220,000
2 years
$1.79 Million - < $1.90 Million
$110,000
1 year
≥ $1.90 Million
Nil
N/A

*Assumes the individual is not already in a previously triggered bring-forward period.

Notes:

1An individual’s personal concessional contribution cap for 2023-24 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 2023-24 will be NIL where their TSB, measured at 30 June 2023 is $1.9 Million or more. This also applies to individuals who are already in a previously triggered bring-forward period.

3An individual’s TSB must be less than $1.9 Million to be eligible for Government Co-contribution.

4An individual’s Personal Transfer Balance Cap will be less than $1.9 Million where they have commenced a retirement phase income stream before 1 July 2023.

Other relevant caps and thresholds

While perhaps not specific to SMSF trustees, the following thresholds are also likely to be of interest to SMSF practitioners:

Other thresholds Current
2022-23		 New
2023-24
Defined benefit income cap
$106,250

$118,750
Untaxed plan cap amount
$1,650,000

$1,705,000

Division 293 Tax threshold1

$250,000

$250,000

Spouse contribution tax offset1, 2

  •  Lower threshold
  • Upper threshold


$37,000

$40,000

 

$37,000

$40,000

12023/24 threshold is indicative only. These thresholds are not subject to usual CPI/AWOTE indexation, however at the time of writing they were yet to be confirmed for 2023/24.

2The TSB for the spouse receiving the contribution must be less than $1.9 Million to be eligible for the spouse contribution tax offset.

Reminders

Preservation age

Preservation age will remain at 59 (for those born between 1 July 1963 and 30 June 1964).

Preservation age will not increase to age 60 until 1 July 2024 (for those born on or after 1 July 1964).

Superannuation Guarantee (SG) Rate

The SG rate will increase from 10.5% to 11% from 1 July 2023.

Written by Fabian Bussoletti, Technical Manager