Your superannuation will likely become one of your most substantial assets in retirement. So it pays to keep informed about ongoing changes in the system and strategies to optimise your benefits.
Superannuation and its related offerings are constantly evolving. This evolution is driven by federal government regulations, with updates typically announced during the annual federal budget presentations, typically in May each year.
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Superannuation and its associated products and services continue to evolve over time. Why? Well, the regulations for super are set by the Federal Government, and upcoming changes are often introduced during federal budget announcements, which is usually in May each year.
Changes can be made to all parts of the superannuation and retirement sector, including Age Pension rules, the Superannuation Guarantee rate, annual limits for contributions, or to the way super funds report their investment earnings.
Here are some of the key changes to super for this year.*
- Increase to Superannuation Guarantee (SG) rate
- Increase to super contribution limits
- New personal tax rates
- New income thresholds
- Revised age at which you can access your super
* All changes effective from 1 July 2024.
Changes to super are usually effective from the 1st of July in the year they are introduced, but we recommend checking out the full details. For more information about changes to superannuation in 2024 and to understand more about how they might impact you, visit unisuper.com.au/superannuationchanges or the ATO website.
The information contained in this video is of a general nature and doesn't consider your personal circumstances. Before making decisions, consider the relevant PDS and TMD on our website and your circumstances, and whether to seek financial advice. Investment returns can be positive or negative. Past performance isn’t indicative of future performance. UniSuper Advice is operated by UniSuper Management Pty Ltd ABN 91 006 961 799 (USM), which is licensed to provide financial product advice. USM is also the administrator of the fund UniSuper ABN 91 385 943 850 (UniSuper). UniSuper Limited ABN 54 006 027 121 is the trustee of UniSuper.
Superannuation changes already in effect
Legislative increase to the super guarantee rate
Simply put, the super guarantee (SG) rate is the minimum percentage of your ordinary time earnings (OTE) that your employer is required to contribute to your superannuation.
You’ll receive employer contributions provided you’re age 18 or older, or if you’re under age 18 working more than 30 hours a week.
As legislated, the SG rate rose to 11.5% from 11% on 1 July 2024.
Changes to contribution limits
There are many ways you can grow your superannuation, but there are limits on how much you can contribute and when. It helps to keep across any changes to these limits—exceeding them can incur tax penalties.
How are before-tax (concessional) contribution limits changing?
The before-tax contributions cap rose from $27,500 to $30,000 on 1 July 2024. These contributions are taxed at 15%. If you earn over $250,000, you may pay an additional 15% tax, so 30% in total.
You could be eligible to make the most of what’s known as the ‘carry forward’ rule , and bring forward portions of your unused before-tax contribution cap over a rolling five-year period.
How are after-tax (non-concessional) contribution limits changing?
The after-tax contributions cap rose from $110,000 to $120,000 on 1 July 2024. You don’t generally pay extra tax on these contributions.
If you’re under age 75 and you go over the cap, you may be able to ‘bring forward’ up to three years of after-tax contributions. The amount you can bring forward depends on your total super balance at 30 June of the previous financial year. The ‘bring forward’ caps also changed on 1 July 2024.
Head to our Caps on super contributions page for more information.
Preservation age
Your preservation age is the age when you can access your super if you’re retired, or start a TTR income stream while you’re still working. As of 1 July 2024, preservation age is 60. Your preservation age was determined by your date of birth prior to 1 July 2024.
Upcoming superannuation changes
How is the SG rate changing?
As legislated, the SG rate will again change at the beginning of 2025-26 financial year, rising by another 0.5% to 12% on 1 July 2025.
Superannuation on government-funded paid parental leave
As part of the 2024 Federal Budget, the government announced its intention to pay superannuation to parents accessing its paid parental leave scheme from 1 July 2025. UniSuper and the superannuation industry have strongly advocated for this change as an important part of securing women’s financial future.
It’s important to note that this is presently only proposed and requires legislation to be passed before it can be implemented.
Tax on super balances over $3 million
The government has announced its intention for super accounts with balances over $3 million to be taxed at 30% on certain earnings, rather than 15% as part of its 2023 Federal Budget. You won’t be affected if your super balance is less than $3 million—accounts under this amount will continue to be taxed at 15%.
It’s important to note that this is presently only proposed and requires legislation to be passed before it can be implemented.
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Things you need to know
The content of this page was correct as of 1 July 2024. The government may make changes to super during the year. Check the ATO website for the latest information on any recently announced changes. If you think there will be an impact on your super, seek advice from a qualified financial adviser. Contact UniSuper Advice on 1800 823 842.