From 1 July 2024 the amount you can contribute to your superannuation will increase.
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 are indexed to wage growth based on the prior year December quarter’s average weekly ordinary times earnings (AWOTE).
- For those with the disposable income to contribute, superannuation can be very attractive with a 15% tax rate on concessional super contributions and potentially tax-free withdrawals when you retire.
- For business owners who might have had an exceptional year or sold their business, it’s an opportunity to get more into super but caution is needed with the timing of contributions to maximise outcomes.
- If you know you will have a capital gains tax liability in a particular year, you may be able to use ‘catch up’ contributions to make a larger than usual contribution and use the tax deduction to help offset your capital gain tax bill.
- This strategy is dependant upon you meeting the eligibility criteria to make catch-up contributions and you lodge a Notice of Intent to Claim (or vary) a deduction for personal super contributions, with your super fund.
