Super Contributions Cap to Rise

Superannuation contribution caps are set to rise for the first time in three years!

Currently at $27,500, the concessional contribution cap ‘CC’ will be raised to $30,000. 

The CC cap refers to the maximum amount of contributions that can be made to a superannuation fund within a financial year. These contributions include:

• Employer super guarantee contributions – contributions made by an employer 
• Personal deductible contributions – contributions made by individuals and claimed as a tax deduction 
• Salary sacrificed contributions – contributions made by an employer at the request of an employee, deducted from the employee’s pre-tax salary. 

Non-concessional Contribution Cap Increase

The cap on non-concessional contributions ‘NCC’ will also increase, rising from $110,000 to $120,000. 

These contributions typically include non-deductible contributions made to a superannuation fund that are not tax deductible. For instance, contributions made from income that has already been taxed, spouse or government contributions and contributions made from the sale of assets. 

What does this mean for your super? 

The increase in the NCC cap means that the maximum amount available under the three-year bring-forward provisions will also rise from $330,000 to $360,000. The ‘three-year bring-forward’ rule allows individuals to bring forward their NCC for up to three years, meaning you can contribute a larger sum to your retirement savings at once. However, the increase in the maximum available will only apply if the provision is activated or initiated on or after July 1st 2024. 

It is important to note that even though the limits on how much you can contribute to your superannuation are going up, the total amount of money you’re allowed to have in your superannuation account (total superannuation balance) for non-deductable contributions and maximum amount of money you’re allowed to transfer into your super (pension general transfer balance cap) will stay at $1.9 million. 

So, while it’s good news that you can put more money into your super, it’s important to remember that there are still limits on how much you can have overall. 

Understanding the rise in contribution caps still provides an opportunity for you to maximise your superannuation contributions and boost retirement savings. Awareness of these thresholds also helps you avoid exceeding limits and facing potential tax consequences.

If you need assistance in understanding how these changes in superannuation contribution caps may impact you, please don’t hesitate to contact our team on 1800 618 800 or via email at admin@simmonslivingstone.com.au