The Federal Government has announced increases to both the concessional (pre-tax) and non-concessional (after-tax) contribution caps from July 1, 2024. There will also be an increase to the bring-forward provision for non-concessional contributions.
All of these changes will coincide with an increase to the compulsory super guarantee and changes to marginal income tax rates that will also come into effect on July 1, 2024.
Increase to the concessional (pre-tax) contributions cap
The concessional (pre-tax) contributions cap will increase from $27,500 to $30,000 per financial year from July 1, 2024.
Concessional super contributions include:
- compulsory super guarantee contributions made by your employer from your pre-tax income.
- additional super contributions made by employers on behalf of employers from pre-tax income under a salary sacrifice arrangement.
- any voluntary additional super contributions that you make and claim as an income tax deduction.
Concessional contributions are taxed at the concessional superannuation rate of 15%, which is lower than the lowest marginal tax rate for anyone earning over the tax-free threshold of $18,200.
Increase to the non-concessional (after-tax) contributions cap
The non-concessional (after-tax) contributions cap will increase from $110,000 to $120,000 per financial year from July 1, 2024. Non-concessional contributions include:
- any compulsory super guarantee contributions made by your employer from your after-tax income.
- any contributions your spouse makes to your super fund on your behalf.
- any voluntary additional super contributions you make that you don’t claim as a tax deduction.
Increase to the non-concessional (after-tax) bring forward provisions
The bring-forward provision for non-concessional contributions allows you to bring forward the next two years of your non-concessional contributions cap to use in addition to your cap for the current financial year, provided your total superannuation balance doesn’t exceed $1.9 million.
The increase in the non-concessional contributions cap from $110,000 to $120,000 from July 1, 2024 will therefore allow you to make up to $360,000 of non-concessional contributions to your super fund each year (i.e., 3 x $120,000) under the bring-forward provisions, rather than the current limit of $330,000 (i.e., 3 x $110,000) for this financial year.
Increase to compulsory super guarantee
The compulsory super guarantee payment that employers are legally obliged to pay into employees’ super funds will increase from 11% to 11.5% on July 1, 2024.
Marginal tax rate changes from July 1, 2024
All of the 1 July 2024 superannuation changes will coincide with changes to marginal income tax rates that will also come into effect on that date. Those changes are summarised in the table below.
| Annual taxable income | Marginal tax payable |
| 0–$18,200 | 0 |
| $18,201–$45,000 | 16% of each dollar over $18,200 (currently 19%) |
| $45,001–$135,000 | $4,288 plus 30% of each dollar over $45,000 (currently $5,092 plus 32.5% of each dollar over $45,000 up to $120,000, and 37% of each dollar between $120,000 and $135,000) |
| $135,001–$190,000 | $31,288 plus 37% of each dollar over $135,000 (currently 37% up to $180,000 and 45% between $180,000 and $190,000) |
| $190,001 and over | $51,638 plus 45% of each dollar over $190,000 (same as current marginal rates) |
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