Key superannuation rates and thresholds for 2024-25

Superannuation is widely regarded as the most tax-effective vehicle for retirement savings, but tax effective is far from tax simple.

In this article, we summarise the eye-glazing range of tax rates and thresholds that can affect the amount of tax you pay on your super savings both in the accumulation phase (while you are working) and retirement phase (when you withdraw your money).

Concessional contributions cap

Concessional contributions are before-tax contributions made into your super fund from several potential sources. They may come from your employer (such as the superannuation guarantee), salary-sacrifice arrangements with your employer or tax-deductible personal contributions. These contributions are taxed at 15% as they enter your super fund. (High income earners may pay more – see Division 293 tax below.)

The concessional contributions cap is a limit on the total amount of pre-tax contributions you can make in a financial year. Any contributions above this cap will incur additional tax.

The concessional contributions cap for 2024–25 is $30,000.

However, under the carry-forward rule you may have a higher personal cap. If you have a total super balance of less than $500,000 on the prior 30 June, you can accumulate any unused portion of the concessional contributions cap from the previous five financial years and use this to make additional super contributions in the current financial year.

If you exceed the cap, your excess contributions are added to your taxable income, and you’ll pay tax on them at your marginal rate.

Non-concessional contributions cap