How to get more joy from retirement
After a lifetime of working, retirement is the time to enjoy yourself. How will you spend it?
From 1 July, the minimum amount employers must contribute to employees’ super each year — the Super Guarantee (SG) — will rise from 11% to 11.5%. This means more money going into your super account, giving your retirement savings a welcome boost.
Learn more about SG and employer contributions in How super works (pdf).
Could your super savings get a much-needed boost?
Starting 1 July, the government’s super co-contribution scheme is increasing the income thresholds for low to middle income earners. This means if you earn less than $45,400 or up to $60,400 in the 2024-25 financial year, and make an after-tax contribution to your super, you may be eligible to get up to $500 per year paid into your super account by the government. This is called a co-contribution.
Learn more about how it works and eligibility requirements.
Thinking about adding more money to your super? Some changes to the contributions caps from 1 July mean you’ll have increased contribution power to top up your retirement savings, if you can afford it.
Let’s explore the options:
Concessional (before-tax) contributions
The concessional contributions limit, which is the maximum amount you can contribute to your super before-tax, is increasing from $27,500 to $30,000 per financial year. Before-tax salary put directly into super is generally taxed at 15%. If this is less than your marginal income tax rate, this could potentially reduce the amount of tax you pay, while growing your super. Learn more in How super is taxed (pdf).
Non-concessional (after-tax) contributions
The non-concessional limit is rising from $110,000 per financial year to $120,000 per financial year. This means you can add more of your after-tax income to your super, if you can afford it. Keep in mind, eligibility may be affected by your total super balance.
Bring-forward rule
With the non-concessional contributions limit increasing to $120,000 per financial year, the bring-forward rule will also change. As the rule allows you to make up to 3 years’ worth of non-concessional contributions in a single financial year, you may be able to put up to $360,000 into your super (eligibility conditions apply).
To see if you’re eligible go to the ATO website, or you can book an appointment to speak with one of our dedicated experts.
The table below summarises the bring-forward caps and period that applies depending on your total super balance.
Total super balance on 30 June 2024 |
Maximum non-concessional contributions cap |
Bring-forward period |
---|---|---|
Less than $1.66m |
$360,000 |
3 years |
$1.66m to less than $1.78m |
$240,000 |
2 years |
$1.78m to less than $1.9m |
$120,000 |
No bring-forward period, general non-concessional contributions cap applies. |
$1.9m or more |
nil |
Not applicable |
From 1 July, the age you need to reach to withdraw your super has increased to 60 for everyone.
This means the low-rate cap rule allowing people between 55-60 years old to withdraw up to $235,000 at a lower tax rate (17%) is no longer available.
After a lifetime of working, retirement is the time to enjoy yourself. How will you spend it?
HESTA for Mercy adviser Aman helped former nurse Govindamma claim an insurance payout which has made a huge financial difference to her retirement.