What are the new changes to super?
The latest changes to super in Australia cover three key areas:
- Super Guarantee increase
- Increase to contribution caps
- Removal of the $450 threshold for super contributions
Increase to the Super Guarantee
On 1 July 2024 the Super Guarantee increased to 11.5%. It will then increase by a further 0.5% on 1 July 2025 to reach 12%. These small increases to the Super Guarantee could make a big difference to your super balance in the long term due to the magic of compound interest.
Increase to super contribution caps
On 1 July 2024 super contribution limits increased as follows:
Contribution cap | 2023/24 | 2024/25 |
Concessional contributions cap | $27,500 | $30,000 |
Non-concessional contributions cap | $110,000 | $120,000 |
Bring forward non-concessional cap | $330,000 over 3 years | $360,000 over 3 years |
Removing the $450 threshold for super contributions
The $450 monthly earnings threshold for superannuation contributions was removed on 1 July 2022. Under the change, employers are required to pay the Superannuation Guarantee on the wages of employees’ earning less than $450 per month. Low income earners will see the benefit from this change.
Note that if you are under the age of 18, unless you are covered by a workplace agreement that states otherwise, you need to work more than 30 hours in a week to be entitled to compulsory Super Guarantee contributions. See here for further details.
The changes to superannuation rules above are all in effect today, however a number of other proposed changes may be in the pipeline. The latest changes to pensions may also affect your retirement planning or income.