The 2024/25 Financial Year brings minor regulatory changes that may present opportunities to update your superannuation and investment plans.
Increase to superannuation contribution caps.
Superannuation contributions are limited each year based on annual caps. These caps have now increased for the 2024/25 Financial year.
Concessional contribution caps have increased from $27,500 to $30,000 per annum. This cap covers superannuation guarantee payments from employers, salary sacrificed contributions, and personal contributions that you intend to claim as a tax deduction.
Non-concessional contribution caps have also increased from $110,00 to $120,000 per year. Non-concessional (after tax) super contributions are payments into superannuation from savings or taxed income for which no tax deduction was claimed.
Increase to Superannuation guarantee rates.
From 1 July 2024, Superannuation guarantee rates, the mandatory superannuation contributions employers make on behalf of salaried employees, have increased from 11% to 11.5%.
Changes to personal income tax rates and thresholds.
As of 1 July 2024, the personal tax rates for Australian tax residents have changed. The table below shows these changes1.
| Thresholds in 2023–24 | Rates in 2023–24 | Thresholds in 2024–25 | Rates in 2024–25 |
| $0 – 18,200 | Tax-free | $0 – 18,200 | Tax-free |
| $18,201 – 45,000 | 19% | $18,201 – 45,000 | 16% |
| $45,001 – 120,000 | 32.5% | $45,001 – 135,000 | 30% |
| $120,001 – 180,000 | 37% | $135,001 – 190,000 | 37% |
| Over $180,000 | 45% | Over $190,000 | 45% |
* These figures do not include the Medicare levy, which has remained unchanged at 2%.
What opportunities could these changes offer?
With the changes to personal tax rates and thresholds, you may be receiving more take-home pay than previously.
Superannuation cap increases may enable you to salary sacrifice a little bit more while staying within the caps.
You may also consider increasing your non-concessional contributions.
It also means that your employer will be required to increase their regular contributions to your superannuation by 0.5%.
With these changes in mind, you should keep a close eye on your first few payslips to check out how much extra you might be able to contribute to your superannuation while maintaining the same take-home income.
However, before leaping on additional contributions, you need to consider previous years’ contributions, especially if you previously brought forward future years’ caps. There are certain requirements to meet to be able to make superannuation contributions. Exceeding the caps or making contributions when you are not eligible to do so may result in penalties.
Whilst there may not have been any major changes to the superannuation landscape, all these smaller changes combined may create a perfect opportunity for you to review your current superannuation and investment strategies.
If you need help determining what strategy may work best for you, it’s the perfect time to engage or reengage with your financial planner to take full advantage of these changes.
The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.
1 https://www.ato.gov.au/about-ato/new-legislation/in-detail/individuals/individual-income-tax-rates-and-threshold-changes
