Over the holiday period the Mercer Super Helpline team will be open, with the exception of public holidays and weekends. You can reach us on 1800 682 525, Monday-Friday. Our operating hours are 8am - 7pm (AEST/AEDT), except for 24, 27, 30 and 31 December, when we’ll close at 6pm.

 

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


We’re here to help


If you have any questions about these changes and how they relate to your Mercer Super account, as part of your membership you can access limited financial advice at no additional cost.

Or if you have a general question about your account, you can call us on 1800 682 525, Monday to Friday, 8am-7pm (AEST/AEDT). If you’re calling from overseas, please call +61 3 8306 0906.


Related readings:

Super on Paid Parental Leave

The Labor Government has proposed paying superannuation as part of Paid Parental Leave from 1 July 2025. While adding super contributions to Paid Parental Leave is a step in the right direction, “there’s more to be done” says Mercer’s, Dr David Knox.

Learn more

 

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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 combined income and concessional contributions is more than $250,000 per financial 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 by visiting the ATO’s website or by seeking your own tax advice.

DISCLAIMER
Issued by Mercer Superannuation (Australia) Limited ABN 79 004 717 533, Australian Financial Services Licence # 235906, the trustee of the Mercer Super Trust ABN 19 905 422 981 ('Mercer Super'). Any advice provided is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any advice, please consider the Product Disclosure Statement available at mercersuper.com.au. The product Target Market Determination can be found at mercersuper.com.au/tmd.

The material contained in this document is based on information received in good faith from sources within the market and on our understanding of legislation which we believe to be accurate.

Mercer financial advisers are authorised representatives of Mercer Financial Advice (Australia) Pty Ltd ABN 76 153 168 293, Australian Financial Services Licence #411766.

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