Changes to super for financial year 2024/25
It’s that time again – a new financial year means changes to super. We’ve broken these changes down below. See how they might affect you – and if you have questions, we’re here to help.
Super Guarantee to 11.5%
Good news for members receiving employer contributions. Your super balance will benefit from a bump, as the SG rate increases from 11% to 11.5% of your ordinary time earnings salary from 1 July 2024. This means more super for future you and, thanks to the magic of compound interest, this could make a big difference to your super in the long term.
The SG rate is on track to increase once more to 12%, from 1 July 2025.
Contribution caps to increase
If you’re thinking of contributing extra to your super this coming financial year, here’s one for you. The government sets limits on how much you can tax-effectively contribute to your super each year. For the first time in 3 years, these caps are increasing as follows.
| Contribution cap | Current cap amount | Amount from 1 July 2024 |
| Concessional (before-tax) contribution cap | $27,500 | $30,000 |
| Non-concessional (after-tax) contribution cap | $110,000 | $120,000 |
There is too much of a good thing, so keeping these caps in mind will help prevent penalty tax.
Related changes to rules around contribution caps
Naturally, in some years you might have more money to contribute to your super than others. For these circumstances, there are the ‘carry-forward rule’ for your (concessional (before-tax) contributions and the bring forward-rule for your (non-concessional (after-tax) contributions.
Carry-forward rule changes
The increase to the concessional (before-tax) contribution cap will also affect the amount of concessional contributions that can be made under the five-year carry forward rules, if your super balance was less than $500,000 at 30 June of the previous financial year.
Bring-forward rule changes
The two- and three-year bring forward limit in relation to your non-concessional (after-tax) contributions will increase from 1 July 2024. The below table shows the change from 2023/24 to 2024/25.
| Year 1 | Year 2 | Year 3 | Total non-concessional contribution cap | |
| Example using the maximum yearly contribution cap without exceeding the cap (i.e. not using bring-forward rule) | $120,000 | $120,000 | $120,000 | $360,000 |
| Example scenario using the bring-forward rule for a member who has not previously triggered the bring forward rule.* | $130,000 contribution when yearly cap is $120,000. (Exceeds cap by $10,000 and triggers bring-forward rule. | $40,000 contribution Total contributions in year 1 and 2 equal $170,000 of permitted $240,000.) | $190,000 contribution (contributed up to yearly cap of 120,000 plus unused cap amount of $70,000 from year 2). | $360,000 |
*If you’ve already triggered the bring-forward rule in a previous financial year, the cap amount is set based on the cap in the first year of the period. For example, if you trigger the bring-forward rule when the non-concessional cap was $110,000, your maximum non-concessional cap over three years will still be $330,000.
Government super co-contributions
The government super co-contribution is a type of super contribution made by the government if you’re a low- or middle-income worker who makes a non-concessional (after-tax) contribution. If you satisfy the full eligibility criteria, you may be paid a co-contribution of up to $500 to your super account. The ‘lower income threshold’ for FY24/25 will be $45,400 and the ‘higher income threshold’ will be $60,400
Pension drawdown limits
There are no changes to the minimum age-related pension draw down limits.
For members with a transition to retirement (TTR) pension, the maximum payment per year remains at 10% of your account balance per year.
You can find the age-related limits and more info at Managing your pension.
Changes for retirees
Already retired? We’ve wrapped up some changes that may affect your retirement income in this article.
Get help to sort your super
Wondering how you can benefit from these super changes? Remember you have access to financial advice to sort your super at no extra cost.* Book a call-back.
*Financial advice obtained over the phone, or through MemberOnline, is provided by Mercer Financial Advice (Australia) Pty Ltd (MFAAPL) ABN 76 153 168 293, Australian Financial Services Licence #411766.