Tax and super changes, 1 July 2024

Staying informed will help you make the most of your retirement savings and avoid any surprises. Here's what you need to know to keep your super on track with the new rules.

Increase to the ESSS DB Fund employer additional contribution rate

If you're an ESSS Defined Benefit (DB) Fund member and reach your maximum benefit multiple, your employer will make extra contributions to your ESSSuper Accumulation Plan account based on a percentage of your salary.^*

Effective 1 July 2024, the employer's additional contribution rate into the Accumulation Plan will increase from 8% to 9%. This rate will further increase in the future:

	Financial year
2020-21	2021-22	2022-23	2023-24	2024-25	2025-26	2026-27
Rate	3%	6%	6%	8%	9%	11%	12%

These extra contributions will count towards your concessional contributions cap. For more information about contribution caps, please check our Tax and super web page.

GENERAL TAX AND SUPER CHANGES EFFECTIVE FROM 1 JULY 2024

From 1 July 2024, there will be significant changes to tax rates and super thresholds in Australia. These updates aim to provide tax relief, support the economy, and help individuals save more for their retirement. Below is an overview of the key changes.

For further information, please visit the Australian Tax Office (ATO) website at ato.gov.au

Removal of the low rate cap amount

The low rate cap amount of $235,000 will be removed. This cap applied to anyone that had reached preservation age but was less than 60 years old. The preservation age phase in to age 60 is now complete. This means that the minimum preservation age is 60 and the low rate cap has been removed. From 1 July 2024, any taxable (taxed element) unpreserved component withdrawn from super will be taxed at 22% for anyone under age 60.

Superannuation guarantee (SG) contribution rate increase

From 1 July 2024, the rate for SG contributions into Accumulation Plan accounts will increase from 11% to 11.5%. This means employers will contribute an additional 0.5% of their employees' ordinary time earnings into their super fund.

Concessional contributions cap

The cap on concessional contributions (pre-tax contributions) will increase from $27,500 to $30,000. This includes employer contributions and any amount you salary sacrifice into super, allowing you to contribute more to your super on a pre-tax basis.

For more information about contribution caps, please check our Tax and super web page.

Non-concessional contributions cap

The non-concessional contributions cap (after-tax contributions) will increase from $110,000 to $120,000. This change allows individuals to contribute more to their super from their after-tax income.

Similarly, the total super balance thresholds for the non-concessional contributions bring-forward rule will increase:

The bring-forward rule allows individuals under 65 to make non-concessional contributions of up to three times the annual cap in a single year by using the next two financial years' worth of cap. Whether you can bring forward two or three years' worth of non-concessional contributions depends on your total super balance.

Total super balance as at 30 June 2024	First year non-concessional contribution cap from 1 July 2024	Period brought forward
Less than $1.66 million	$360,000	3 years
$1.66 million to less than $1.78 million	$240,000	2 years
$1.78 million to less than $1.9 million	$120,000	Nil
$1.9 million	Nil	Nil

For more information about contribution caps and the bring-forward rule, please check our Tax and super web page.

Untaxed plan cap

The untaxed plan cap, which limits the amount of untaxed super benefits you can receive at concessional tax rates, will increase from $1.705 million to $1.78 million.

Government co-contributions

The government co-contribution scheme allows the government to contribute up to $500 to your super when you make a personal contribution. The income thresholds for receiving the government co-contribution will increase:

Income tax rate changes

For further information including income tax rate changes, please visit the Australian Tax Office (ATO) website at ato.gov.au

Interested in super and the latest Budget?

Listen to our Exploring Super podcast, which delves into some of the key changes impacting super in the Federal Budget 2024-25.

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WE'RE HERE TO HELP

You can book an appointment with one of our Member Education Consultants for general advice about your ESSSuper account(s). If you're looking for personal advice relating to your financial situation or needs, our qualified Financial Advisers^** can help.

* The ESSS DB Fund is guaranteed by the Victorian State Government and your defined benefits are not impacted by investment performance. Any super you have in the Accumulation Plan is exposed to investment risks. You can learn more about this on our Investments web page. To choose your investment option, navigate to the Investments / Switch menu by logging into Members Online.

** ESSSuper Financial Advisers are authorised representatives of Link Advice Pty Ltd (Link Advice). Link Advice holds a current Australian Financial Services Licence No. 258145 and is responsible for the financial services provided to you. ESSSuper has an arrangement with Link Advice Pty Ltd to provide financial advice to ESSSuper members. ESSSuper pays Link Advice a fee for this service. Neither the Board, nor the Victorian Government, guarantee or endorse any recommendations made by Link Advice, or are responsible for the advice and actions of Link Advice.

Emergency Services Superannuation Board (ABN 28 161 296 741) (ESSB), the Trustee of the Emergency Services Superannuation Scheme (ABN 85 894 637 037) (ESSSuper).

The information contained in this article is of a general nature only. It should not be considered as a substitute for reading ESSSuper's Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available at esssuper.com.au/pds or by calling 1300 650 161.