The February 2024 announcement of the AWOTE numbers (Average Weekly Ordinary Time Earnings) from November 2023 has confirmed that the concessional and non-concessional superannuation contributions caps will rise from 1 July 2024.

1. Concessional Contributions Cap:

The standard concessional contribution cap will increase from $27,500 to $30,000.

Concessional contributions include:

• Employer contributions (including those made under salary sacrifice arrangements).
• Personal contributions claimed as a tax deduction.
• Notional taxed contributions to defined benefit and constitutionally protected funds.

If you have multiple super funds, all concessional contributions across those funds are combined and counted toward this cap.

2. Non-Concessional Contributions Cap:

The non-concessional contribution cap, which is expressed as 4 times the standard concessional contribution cap, will increase from $110,000 to $120,000.

If you’re under 75 years old, you may be able to bring forward up to three years’ worth of non-concessional contributions, allowing you to contribute up to $360,000 in a single year.

3. Eligibility to make contributions

Your Total Superannuation Balance (TSB) must be below $1.9 million dollars for you to be eligible to make non-concessional contributions.

From July 1, 2022, you may be able to make or receive non-concessional personal and salary sacrifice contributions without meeting the work test if you are under age 75.

However, you still need to meet the work test to claim a deduction for personal superannuation contributions if you wish to have them treated are treated as concessional contributions.

Your TSB includes all your super interests and may differ from your super fund account balance. It encompasses amounts that don't form part of your account balance. It considers both accumulation phase values (for super interests not in the retirement phase) and retirement phase values (for super interests in the retirement phase).

4. Relevance of TSB

TSB affects your eligibility for several superannuation provisions:

Carry-forward concessional contributions: If your TSB is less than $500,000 at the end of the previous financial year, you can carry forward unused concessional contribution caps.

Bring-forward non-concessional contributions cap: If your TSB is below the general transfer balance cap (currently between $1.6 million and $1.9 million, depending on your circumstances), you can use the bring-forward rule for non-concessional contributions.

However, you may not be able use the full $360,000 bring forward amount. Some special rules apply.

5. How to Find Your TSB:

Use ATO online services:

• Log in to ATO online services (or create a myGov account if you don't have one).
• Navigate to Super > Information > Total superannuation balance.
• You'll see your TSB for the current financial year (if available) and historical TSB for previous years.
• Keep in mind that the displayed TSB may not include certain information yet (e.g., current or previous financial year data the ATO haven't received or processed).
• If you believe the displayed TSB is incorrect, verify with your fund and your own records.

This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs. You should obtain and consider the Product Disclosure Statement relating to any product referred to in this presentation before making any decision about whether to acquire the product.