Super contribution limits
Due to indexation arrangements, superannuation contribution limits are set to increase from 1 July 2024.
Please refer to the information below for further details.
Concessional and non-concessional contribution limits
The concessional contribution limit will increase from $27,500 to $30,000 from 1 July 2024.
As the non-concessional contribution limit is set at four times the concessional contribution limit, the non-concessional contribution limit will also increase from $110,000 to $120,000 from 1 July 2024.
Bring forward non-concessional contributions
Bring forward arrangements for non-concessional contributions are also set to change.
As the non-concessional contribution limit is increasing to $120,000, the maximum non-concessional contributions permitted under the three-year bring-forward rule will also increase from $330,000 to $360,000 from 1 July 2024.
Total superannuation balance thresholds for bring-forward non-concessional contributions
Please note however that the Total Superannuation Balance (TSB) thresholds for bring-forward non-concessional contributions will actually decrease from 1 July 2024.
This is something that has not happened previously. Please refer to the tables below.
| FY2023-2024 TSB thresholds for bring-forward non-concessional contribution | |
| Total superannuation balance at 30 June 2023 | Maximum non-concessional contribution limit |
| $1.9m or more | $nil |
| $1.79m to less than $1.9m | $110,000 |
| $1.68m to less than $1.79m | $220,000 (2 years) |
| Less than $1.68m | $330,000 (3 years) |
| FY2024-2025 TSB thresholds for bring-forward non-concessional contributions | |
| Total superannuation balance at 30 June 2024 | Maximum non-concessional contribution limit |
| $1.9m or more | $nil |
| $1.78m to less than $1.9m | $120,000 |
| $1.66m to less than $1.78m | $240,000 (2 years) |
| Less than $1.66m | $360,000 (3 years) |
The decrease in total superannuation balance thresholds for bring-forward non-concessional contributions has arisen because the $1.9m limit used in the thresholds, which is linked to the general transfer balance cap, will not be indexed in FY2024-2025.
The thresholds are calculated by subtracting one or two times (years) the standard non-concessional contribution limit from the general transfer balance cap (currently $1.9m). As the standard non-concessional contribution limit will increase from 1 July 2024, but the general transfer balance cap will remain at $1.9m, the effect is the total superannuation balance thresholds for bring-forward non-concessional contributions will decrease from next financial year.
Bring-forward arrangement triggered prior to 1 July 2024
There will be no change if you have already triggered a bring-forward arrangement prior to 1 July 2024. This is because once you have triggered a bring-forward arrangement, you have locked in a fixed three-year period subject to contribution limits that applied at the time the bring-forward arrangement was triggered.
For example, if you contribute more than $110,000 as a non-concessional contribution in FY2023-2024, you will have locked in a bring forward arrangement where you can contribute no more than $330,000 (depending on your total superannuation balance at 30 June 2023) across three financial years encompassing FY2023-2024, FY2024-2025 and FY2025-2026.
Planning implications
The upcoming increase in contribution limits is welcome and will allow eligible individuals to contribute more to super than what is currently permitted.
One area to pay particular attention is if you are planning to use bring forward non-concessional contribution arrangements, you will need to consider how the decrease in total superannuation balance thresholds applying from 1 July 2024 might impact.
Also remember that the compulsory contribution rate under Superannuation Guarantee (SG) is also increasing from 1 July 2024 to 11.5%. If you are salary sacrificing, the higher concessional cap will allow you to sacrifice more salary into super but the increased SG rate will likely reduce some of your extra capacity which you will need to adjust for.
If you would like to discuss your circumstances further, please contact us.
