Changes to super

New rules from 1 July 2023

1 July 2023 marked both the beginning of the 2023/24 financial year, as well as changes to a number of super rules. You can find out how you can stay on top of changes to super rules and what they may mean for you below.

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  • Superannuation guarantee rate increased to 11%

    From 1 July 2023 individuals receiving Superannuation Guarantee (SG) contributions from their employer, will see an increase from 10.5% to 11% – helping to further boost their retirement savings and secure their financial future. 

    It’s currently expected that the SG rate will continue to rise; first to 11.5% on 1 July 2024 and then 12% on 1 July 2025 – meaning even more savings helping to boost the super balances of working Australians.

    A little can go a long way

    Although an increase of 0.5% to the SG rate may sound small, over the long term, even a small amount can have a significant impact on your balance. 

    The Mercer Retirement Income Simulator, can help you visualise what your retirement income could look like, how long it might last and the difference adding a little extra can make.

  • Pension minimum drawdown rates return to normal

    In March 2020, the Federal Government halved the pension minimum drawdown rate for account-based pensions, transition to retirement pensions and similar products. This was a temporary response to COVID-19, to help provide Australians with more flexibility in how they managed their superannuation assets during uncertain times.

    These temporary drawdown rates were in effect for the 2019/20 to 2022/23 financial years and ended on 1 July 2023.

    For members who were previously receiving a pension payment amount below the standard drawdown rate, it’s likely they’ll see an increase in their pension payments now that the rates have returned to normal.

  • Government co-contribution now more accessible

    The government co-contribution aims to help low and middle-income earners add to their retirement savings by co-contributing up to $500 to their super if after-tax contributions are made. The exact amount that the Government contributes will depend on both your income and how much you contribute in after-tax contributions.

    From 1 July 2023, the Government has increased the lower threshold for low and middle-income earners from $42,016 to $43,445 – providing more Australians with the opportunity to take full advantage of this scheme.

  • Transfer balance cap increased to $1.9 million

    The general transfer balance cap, which provides a cap on how much money an individual can hold in retirement phase increased to $1.9 million on 1 July 2023.  Previously there was a cap of $1.7 million, and any amounts over this needed to be withdrawn.

    This increase to $1.9 million provides individuals with an additional $200,000 that they can keep in a retirement phase product such as an allocated pension – an environment where those funds can generate tax-free investment returns, further helping to fund their retirement.

    For more information on the transfer balance cap, please see the ATO’s website.

  • Bring-forward rule thresholds increased

    The bring-forward rule, which allows for eligible individuals to ‘bring-forward’ contributions from future financial years, potentially up to $330,000 within a single financial year has been expanded to align with the $1.9 million general transfer balance cap.

    Previously individuals who had $1.59 million or more in superannuation were not eligible to use the bring forward rule. From 1 July 2023 however, the thresholds have increased to the below:

    Total super balance on 30 June of previous year

    Non-concessional contributions cap for the first year

    Bring-forward period

    Less than $1.68 million


    3 years

    $1.68 million to less than $1.79 million


    2 years

    $1.79 million to less than $1.9 million


    Not eligible to use the bring-forward rule

    $1.9 million or more


    Not eligible to use the bring-forward rule


    By expanding these thresholds, the Government has provided individuals with more flexibility around when and how much they contribute to their super.

We’re here to help

If you have any questions about what these changes, you can contact your adviser if you have one, or our Helpline on 1800 682 525, Monday to Friday, 8am-7pm (AEST/AEDT).

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Issued on behalf of Mercer Superannuation (Australia) Limited (MSAL) ABN 79 004 717 533, Australian Financial Services Licence 235906, the trustee of Mercer Super Trust ABN 19 905 422 981. We recommend you seek professional advice from a licensed, or appropriately authorised, financial adviser if you are unsure of action to take. The value of an investment in the Mercer Super Trust may rise and fall from time to time. Neither MSAL nor Mercer (Australia) Pty Ltd (Mercer) guarantees the investment performance, earnings or return of capital invested in the Mercer Super Trust. Past performance should not be relied upon as an indicator of future performance. ‘MERCER’ and Mercer SmartPath are Australian registered trademarks of Mercer ABN 32 005 315 917.