New Super Rules — Are You Prepared?

With the recent changes to superannuation rules, it’s more important than ever to stay on top of the latest updates. These new changes could have a huge impact on how much you save—and potentially even how soon you can retire. Ignoring these changes might mean missing out on opportunities to boost your balance, while staying informed could give you the edge you need to reach your retirement goals sooner. Let’s break down what’s changing, why it matters, and how you can make the most of it to retire early and live comfortably.

Updates to the Superannuation Guarantee (SG) Rate

If you’re working in Australia and meet the eligibility criteria, your employer must contribute to your super. This is called the Super Guarantee (SG) and is paid on top of your regular salary.

As of July 1 2024, the SG rate has risen from 11% to 11.5%, with a further increase to 12% scheduled for 1 July 2025.

Changes to Super Contribution Limits

Building up your retirement savings isn’t just about employer contributions. You can also add to your super voluntarily, either before tax (concessional contributions) or after tax (non-concessional contributions).

In addition to the SG rate changes, contribution caps have increased, giving you more opportunities to grow your super balance.

Concessional (Before-Tax) Contributions Cap

Concessional contributions include the compulsory amounts your employer pays, salary sacrifice arrangements, and personal contributions claimed as tax deductions.

For the 2024–25 financial year, the concessional contributions cap has gone up from $27,500 to $30,000. Staying within this limit means avoiding higher tax rates.

Carry-Forward Concessional Contributions

If you’ve had breaks from work or couldn’t contribute as much in the past, you might be able to catch up with carry-forward concessional contributions.

To qualify, your total super balance at 30 June of the previous financial year must be under $500,000. If eligible, you can use unused concessional caps from the past five years. This is a great way to make up for lost time and potentially claim a larger tax deduction.

Non-Concessional (After-Tax) Contributions Cap

Adding to your super using after-tax money is another option. For 2024–25, the cap on these contributions has increased from $110,000 to $120,000 per year.

To be eligible, you must be under 75 years old, and your total super balance as of 30 June must be under $1.9 million.

The Bring-Forward Rule

This rule allows you to contribute up to three years’ worth of after-tax contributions in one go.

For example, in 2024–25, if your total super balance at 30 June 2024 is less than $1.66 million and you haven’t used the bring-forward rule in the last two financial years, you can contribute up to $360,000.

If your balance is between $1.66 million and $1.78 million, the cap is $240,000. For balances between $1.78 million and $1.9 million, the limit is $120,000.

Summary of Contribution Caps

Get Expert Advice

Superannuation can be complex, so it’s worth seeking advice from a financial professional. They can help you create a strategy tailored to your goals and provide guidance on investment options and insurance.

Chris Tolevsky has over 30 years experience in the medical and allied health fields.  He provides expert guidance on tax strategies, building and protecting wealth . If you’re interested in discussing how we can help you please book a complimentary consultation. 

Disclaimer: This article contains general information only . It is not designed to be a substitute for professional advice and does not take into account your individual circumstances, so please check with us before implementing this strategy to make sure it is suitable