Changes to super

New rules from 1 July 2024

1 July 2024 marked both the beginning of the 2024/25 financial year, as well as changes to several super rules.

In the following article we unpack these changes and what they may mean for you.

Superannuation Guarantee rate increased to 11.5%

As of 1 July 2024 individuals receiving Superannuation Guarantee (SG) contributions from their employer saw an increase in the SG rate of 11% to 11.5% – helping to further boost their retirement savings and secure their financial future.¹

It’s currently expected that the SG rate will rise to 12% on 1 July 2025 – meaning even more savings helping to boost the super balances of working Australians.
Contribution cap increases

Making additional contributions to your super is one of the most common strategies people use to help turn their retirement dreams into a reality – and as of 1 July 2024, you’re now able to add in more each financial year than ever before.

Non-concessional contributions

With the non-concessional cap having increased from $110,000 to $120,000 on 1 July 2024, eligible individuals are now able to contribute an extra $10,000 of after-tax money to their super account each financial year without tax implications.

This additional $10,000 also extends to the ‘bring-forward rule’, which allows eligible individuals to make up to three years’ worth of after-tax contributions in a single financial year - increasing the potential contribution amount from $330,000 to $360,000.

You can learn more about the non-concessional contribution cap and the bring-forward rule, including eligibility criteria on our dedicated contribution caps webpage.

Concessional contributions

Alongside the increase to non-concessional contributions, the concessional contribution cap also increased from $27,500 to $30,000 – as concessional contributions, such as super guarantee, salary sacrifice and personal contributions which have been claimed as a tax deduction, are only taxed at 15%² this is great news for those who want to maximise their super while saving on tax.

You can learn more about the contribution cap on our dedicated contribution caps page.
Super co-contribution income limits updated

In line with the Average Weekly Ordinary Time Earnings, the ATO has updated the income limits for the super co-contribution – a contribution of up to $500 made by the government to your super account if you make an after-tax contribution.

To be eligible for a super co-contribution in the 2023/24 financial year, your annual taxable income had to be between $43,445 and $58,445. As of 1 July 2024 this was updated to between $45,400 and $60,400.

If you qualify for the super co-contribution, provided you’ve made an after-tax contribution and we hold your TFN on file, the contribution will automatically be contributed to your super account by the ATO once you complete your tax return – there’s nothing else you need to do.

You can learn more about the super co-contribution, including eligibility criteria by reading our dedicated factsheet.

A little extra today can go a long way tomorrow

With a number of these changes potentially meaning more money in your super, take a moment to consider how much income you’re on track to receive when you retire.

With the Retirement Income Simulator you’ll be able to visualise what your retirement income could look like, how long it might last and how adding even just a little bit extra to your super today, can go a long way tomorrow.

Simulate my retirement income

Learn more

Accessible financial advice

As a Mercer Super member, you can access advice when you need it. No minimum requirements – all you need is a Mercer Super account. With Mercer Super’s accessible and affordable advice options, expert advice is always within easy reach.

Learn more

Federal Budget 2024-25 analysis

Expert analysis and insights from the Marsh McLennan group of companies on what the Federal Budget means for individuals and businesses.

Learn more

^{1 Some employers may pay more than the minimum 11.5% SG rate as part of an industry award or employment contract. Depending on your situation, you can check the relevant award or contract to ensure your employer is contributing the correct amount on your behalf. The 11.5% of your gross income is based on your ordinary hours of work, including any shift loadings and allowances, but does not include overtime payments. Bonuses may be included, depending on your employment arrangements. We recommend confirming your specific circumstances with your HR department.

2 If the total of your surcharge income and concessional contributions is more than $250,000 per year, any concessional contributions over this threshold will be taxed at 30%. This extra 15% tax is often referred to as 'Division 293 Tax'. Find out more at ato.gov.au/rates/key-superannuation-rates-and-thresholds or by seeking your own tax advice}

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