Superannuation: What to know before June 2024

There are several big changes to the superannuation rules coming up from the 1st of July 2024 that employers will need to be familiar with, including the superannuation guarantee rate, changes to contribution caps and updates to carry forward and bring forward rules. This article outlines these changes and aims to make them clearer for employers.

Superannuation guarantee contributions
From June 30, there will be an increase to the employer superannuation guarantee rate, which will impact employee take home pay. In accordance with mandatory employer contributions to employee superannuation, the contribution rate will be rising to 11.5%, and is legislated to rise again to 12% on 1 July 2025.

Contribution cap changes
Along with employer contribution to employee superannuation, employees can grow their own super with their own contributions. The government sets limits on how much employees can contribute without tax implications. The changes include:

• The before-tax contribution cap in 2024-25 is $30,000, which is up from $27,500 in 2023-24.
• The after-tax contribution cap in 2024-25 is $120,000, which is up from $110,000 in 2023-24.

Bring forward rule changes
Any unused carry-forward contribution amounts will drop off, because cap amounts can only be carried forward for 5 years. As an example, any unused portion of the concessional contribution cap from the 2018/19 financial year will no longer be available as of 1 July 2024. However, the bring-forward arrangements will allow you to contribute up to $360,000 over a three-financial year period with no regard to the annual cap, provided the bring-forward rule is triggered after 1 July 2024.

Get in touch with us if you need some more information around superannuation and growing your wealth.