Contribution Caps Climb
As a trusted financial advice network, we have begun discussing with clients increases to the superannuation contribution caps.
Strong wage growth in Australia has triggered an increase in concessional and non-concessional contribution limits from July 1, 2024.
The increases are especially pertinent to high-income earners, pre-retirees, and small business owners.
What are Contribution Caps?
Contribution caps limit the amount of savings you can contribute to superannuation:
Concessional contributions (before tax) include super guarantee payments made by an employer, salary sacrifice, and contributions claimed as tax deductions. These are taxed at 15% within superannuation.
Non-concessional contributions are made from after-tax income and are therefore not taxed when entering superannuation.
You may also be eligible to “bring forward” contributions to maximise the amount of capital in your superannuation.
What do I need to do?
Superannuation is a tax-efficient vehicle for building and preserving wealth. We have provided a handy checklist below to help you optimize the cap increase:
Review your existing contribution plans to make use of the forthcoming increase
Evaluate the potential to bring forward unused concessional and non-concessional caps to maximize your superannuation savings
Ensure any additional contributions to breach the total superannuation balance limit
Should you wish to discuss the contributions caps or superannuation in more detail, don’t hesitate to contact us and we’ll put you in touch with with of our trusted financial advisers.
