Using the bring forward rule<\/em><\/p>\nThe bring forward rule enables you to bring forward up to 2 years\u2019 worth of future non-concessional contributions into the year you make the contribution \u2013 this is assuming your total superannuation balance enables you to make the contribution and you are under age 75.<\/p>\n
If you utilise the bring forward rule before 30 June, the maximum that can be contributed is $330,000. However, if you wait to trigger the bring forward until on or after 1 July, then the maximum that can be contributed under this rule is $360,000.<\/p>\n
\n\u2018Catch up\u2019 contributions<\/em><\/p>\nIf your super balance is below $500,000 on the prior 30 June, and you want to quickly increase the amount you hold in super, you can utilise any unused concessional super contributions amounts from the last 5 years.<\/p>\n
Let\u2019s look at the example of Gary who has only been using $15,000 of his concessional super cap for the last few years. Gary\u2019s super balance at 30 June 2023 was $300,000, so he is well within the limit to make catch up contributions.<\/p>\n
\n\n\n<\/td>\n Concessional Cap<\/strong><\/td>\nUsed<\/strong><\/td>\nUnused<\/strong><\/td>\n<\/tr>\n\n2018-19<\/td>\n $25,000<\/td>\n $15,000<\/td>\n $10,000<\/td>\n<\/tr>\n \n2019-20<\/td>\n $25,000<\/td>\n $15,000<\/td>\n $10,000<\/td>\n<\/tr>\n \n2020-21<\/td>\n $25,000<\/td>\n $15,000<\/td>\n $10,000<\/td>\n<\/tr>\n \n2021-22<\/td>\n $27,500<\/td>\n $15,000<\/td>\n $12,500<\/td>\n<\/tr>\n \n2022-23<\/td>\n $27,500<\/td>\n $15,000<\/td>\n $12,500<\/td>\n<\/tr>\n \n2023-24<\/td>\n $27,500<\/td>\n ?<\/td>\n ?<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n <\/p>\n
Gary could access his $27,500 concessional cap for 2023-24 plus the unused $55,000 from the prior 5 financial years.<\/span><\/p>\nIf Gary doesn\u2019t access the unused amounts from 2018-19 by 30 June 2024, the $10,000 will no longer be available. <\/span><\/p>\nTransfer balance cap unchanged<\/em><\/p>\nThe general rate for the transfer balance cap (TBC), that limits how much money you can transfer into a tax-free retirement account, will remain at $1.9 million for 2024-25. The TBC is indexed by the December consumer price index (CPI) each year.<\/p>\n
Revised stage 3 tax cuts confirmed for 1 July <\/em><\/p>\nThe revised stage 3 tax cuts have passed Parliament and will come into effect on 1 July 2024.<\/p>\n
Before the new tax rates come into effect, check any salary sacrifice agreements to ensure that they will continue to produce the result you are after.<\/p>\n
Resident individuals<\/p>\n
\n\n\nTax rate<\/strong><\/td>\n2023-24<\/strong><\/td>\n2024-25 <\/strong><\/td>\n<\/tr>\n\n0%<\/td>\n $0 \u2013 $18,200<\/td>\n $0 \u2013 $18,200<\/td>\n<\/tr>\n \n16%<\/td>\n <\/td>\n $18,201 \u2013 $45,000<\/td>\n<\/tr>\n \n19%<\/td>\n $18,201 \u2013 $45,000<\/td>\n <\/td>\n<\/tr>\n \n30%<\/td>\n <\/td>\n $45,001 \u2013 $135,000<\/td>\n<\/tr>\n \n32.5%<\/td>\n $45,001 \u2013 $120,000<\/td>\n <\/td>\n<\/tr>\n \n37%<\/td>\n $120,001 \u2013 $180,000<\/td>\n $135,001 \u2013 $190,000<\/td>\n<\/tr>\n \n45%<\/td>\n >$180,000<\/td>\n >$190,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n <\/p>\n
Non-resident individuals<\/p>\n
\n\n\nTax rate<\/strong><\/td>\n2023-24<\/strong><\/td>\n2024-25 <\/strong><\/td>\n<\/tr>\n\n30%<\/td>\n <\/td>\n $0 \u2013 $135,000<\/td>\n<\/tr>\n \n32.5%<\/td>\n $0 \u2013 $120,000<\/td>\n <\/td>\n<\/tr>\n \n37%<\/td>\n $120,001 \u2013 $180,000<\/td>\n $135,001 \u2013 $190,000<\/td>\n<\/tr>\n \n45%<\/td>\n >$180,000<\/td>\n >$190,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n <\/p>\n
Working holiday markers<\/p>\n
\n\n\nTax rate<\/strong><\/td>\n2023-24<\/strong><\/td>\n2024-25 <\/strong><\/td>\n<\/tr>\n\n15%<\/td>\n 0 \u2013 $45,000<\/td>\n 0 \u2013 $45,000<\/td>\n<\/tr>\n \n30%<\/td>\n <\/td>\n $45,001 \u2013 $135,000<\/td>\n<\/tr>\n \n32.5%<\/td>\n $45,001 \u2013 $120,000<\/td>\n <\/td>\n<\/tr>\n \n37%<\/td>\n $120,001 \u2013 $180,000<\/td>\n $135,001 \u2013 $190,000<\/td>\n<\/tr>\n \n45%<\/td>\n >$180,000<\/td>\n >$190,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"From 1 July 2024, the amount you can contribute to super will increase. We show you how to take advantage of the change. The amount you can contribute to superannuation will increase on 1 July 2024 from $27,500 to $30,000 for concessional super contributions and from $110,000 to $120,000 for non-concessional contributions. The contribution caps […]<\/p>\n
Read More… from How To Take Advantage Of The 1 July Super Cap Increase<\/span><\/a><\/p>\n","protected":false},"author":11,"featured_media":10315,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[1],"tags":[],"jetpack_publicize_connections":[],"acf":[],"yoast_head":"\nHow To Take Advantage Of The 1 July Super Cap Increase - Element Accountants & Advisors<\/title>\n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n\t \n\t \n\t \n