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Super fund members with money to spare can put extra into their super accounts from 1 July 2024, thanks to an increase in the concessional and non-concessional contributions caps from 1 July 2024. This is the first increase in three years and is due to indexation of the contribution caps to wages. Wages, as measured by Average Weekly Ordinary Times Earnings (AWOTE), grew strongly in the year to November 2023.
The annual concessional contributions cap will increase from $27,500 to $30,000 and the annual non-concessional contributions (NCC) cap, set at four times the standard concessional contributions cap, will increase from $110,000 to $120,000.
This also means that the maximum bring-forward rule cap increases too, from $330,000 to $360,000. The actual amount of the bring-forward NCC will depend on your total superannuation balance at 30 June the previous financial year. For example, the amount of bring-forward NCC you can make in 2024–25 will depend on your total super balance on 30 June 2024.
Remind me, what is the bring-forward rule?
If you are under age 75 at any time in a financial year, you can bring forward up to two years’ worth of non-concessional contributions for that income year. This allows you to contribute up to three years’ worth of NCCs without exceeding your non-concessional cap.
The table below shows how your total superannuation balance (TSB) will affect the bring-forward period available to you in 2024–25 if you trigger the rule that year. If you are already in an active bring-forward period, the caps that applied in the first year continue to apply until your bring-forward period ends.
| Total super balance on 30 June of previous year | Maximum total contribution during bring–forward period | Bring-forward period |
|---|---|---|
| Less than $1.66m | $360,000 | 3 years |
| $1.66m to less than $1.78m | $240,000 | 2 years |
| $1.78m to less than $1.9m | $120,000 | No bring-forward period. General non-concessional cap applies. |
| $1.9m or more | Nil | N/A |
These changes present planning issues if you are considering making a large non-concessional contribution, depending on whether you are at or near your total super balance, or whether you have already triggered the bring-forward rule.
Planning for further non-concessional contributions (NCCs) when you have already triggered the bring-forward provisions
In situations where you previously made NCCs that exceeded your annual cap and hence triggered the bring-forward provisions, you need to keep in mind that you may not yet be eligible to access the increased non-concessional cap until your existing bring-forward period (three-year period) comes to an end.
The maximum level of NCCs that you can make are based on the non-concessional cap in the year you first triggered your bring-forward period.
For that reason, it’s important to have a clear understanding of your own personal position before you make further NCCs, especially where you are close to or have already exceeded the relevant total superannuation balance (TSB).
To work out how much you may be able contribute under an existing bring-forward arrangement, consider the following steps:
Step 1: Determine your TSB at the testing date, that is, the prior 30 June. You can find this information by logging into your myGov account and clicking on the superannuation tab.
Step 2: If you are not yet in a bring-forward arrangement, refer to the following tables to determine what your total non-concessional cap is for the relevant year based on your TSB at the prior 30 June.
Non-concessional contribution cap: 2023–24 financial year
| TSB at prior 30 June 2023 | NCC cap |
|---|---|
| $1.9m + | $0 |
| $1.79m to < $1.9m | $110,000 |
| $1.68m to < $ 1.79m | $220,000 |
| < $1.68m | $330,000 |
Non-concessional contribution cap: 2024–25 financial year
| TSB at prior 30 June 2024 | NCC cap |
|---|---|
| $1.9m + | $0 |
| $1.78m to < $1.9m | $120,000 |
| $1.66m to < $ 1.78m | $240,000 |
| < $1.66m | $360,000 |
Step 3: Check for any existing bring-forward arrangement that may have been triggered. Your myGov account should show how much of your three-year bring-forward contribution cap balance remains.
Remember that you are not eligible to access any indexed amount of the non-concessional cap until your current three-year bring-forward period ends.
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