Jun 21, 2024
| CHANGES | 2024 FY | 2025 FY |
| Superannuation guarantee rate | 11.0% | 11.5% |
| Concessional contribution cap | $27,500 | $30,000 |
| Non concessional contribution cap | $110,000 | $120,000 |
Employers
Employers need to be aware that the superannuation guarantee rate for the 2024/2025 financial year will rise from 11.0% to 11.5% effective from July 1, 2024. This means that for all payroll processed (paid) in July 2024, irrespective of what period the employment relates to, you will need to apply the new 11.5% rate. Conversely for any payroll processed (paid) in June, irrespective of the period that the employment relates to, you will need to apply the 11.0% rate to calculate the superannuation payable.
Employee superannuation payments are due as follows:-
- July-September quarter – due by 28 October
- October-December quarter – due by 28 January
- January-March quarter – due by 28 April
- April-June quarter – due by 28 July
It is recommended that you check with the superannuation clearing house that you use to determine when the payment of the superannuation should be made. It is critical that the superannuation funds receive the payments before the above dates, this usually requires actual payments to be made earlier.
Employees
Employees can take advantage of the increased concessional contribution cap from 1 July 2024 and increase salary sacrificing into their superannuation or make additional personal contributions.
It is recommended that you seek independent financial advice to ensure that the above strategy is available to you before making any additional superannuation contributions.
All Taxpayers
For all taxpayers with less than $500,000 in superannuation, you may be able to take advantage of any unused concessional contribution caps from the previous five years (including the year of the contribution). This means you could potentially contribute more than the annual concessional cap in a single financial year, providing the opportunity to claim a significant tax deduction for the personal contributions made.
An alternative way to increase your super balance is to make non concessional (after tax) contributions. The non concessional cap is increasing from $110,000 per annum from 1 July 2024 to $120,000 per annum. Depending on your age and superannuation balance, you might qualify for the bring forward rule, allowing you to use up to three years' worth of the non-concessional cap in a single year, enabling contributions of up to $360,000 in one financial year.
It is recommended that you seek independent financial advice to ensure any of the above strategies are available to you before making any additional superannuation contributions.
Division 293 Tax for High Income Earners on Super Contributions
Division 293 tax is an extra tax imposed on high-income earners by the ATO. It aims to reduce the tax concession for individuals whose combined income and concessional contributions is greater than $250,000. The tax is imposed at 15% of either the excess over the threshold or the taxable superannuation contributions, whichever is less.