Superannuation Contribution Limits to Increase from 1 July 2024 – From 1 July 2024, the amount Australian Expats can contribute to their superannuation fund will change, providing increased opportunities to save for retirement and minimize Australian tax payable.
The indexation of Australia’s superannuation contributions caps is linked to increases in average wage growth in Australia, as measured by the Average Weekly Ordinary Time Earnings (AWOTE).
Yesterday’s AWOTE figures published by the Australian Bureau of Statistics (ABS) mean the Caps (limit) on both Concessional Contributions (pre-tax) and Non-Concessional Contributions (post-tax) will increase from 1 July 2024, as detailed below:
- Concessional Contributions (CC) Limit: Increasing from $27,500 to $30,000 per financial year
- Non-Concessional Contributions (NCC) Limit: Increasing from $110,000 to $120,000 per financial year
Additionally, those eligible to contribute more than the contribution limits under the “Carry-forward provisions” (relevant for Concessional Contributions) or the “Bring forward provisions” (relevant for Non-Concessional Contributions) will also benefit greatly from the increased limits from 1 July 2024:
- New CC cap under the Carry forward provisions*: Increases from $157,500 to $162,500 in a single financial year
- New NCC cap under the Bring forward provisions*: Increases from $330,000 to $360,000 in a single financial year
*additional criteria must be met to be eligible to contribute and expert advice should be sought before contributing to avoid inadvertent tax consequences which can be severe.
The new superannuation changes from 1 July 2024 open up a whole range of new planning opportunities and strategies for Australian expats, however, they can be quite complex to navigate for even the most astute super fund member.
If you would like to learn more about how the new rules might apply to your particular situation, please feel more than welcome to get in contact through our Contact page and we’d be happy to speak with you.