It is important for individuals to be aware of and to ensure that they are making compliant contributions to their superannuation funds, and to maximise their retirement savings within the limits set by the government.
We’ve outlined a breakdown of each of the various key caps related to superannuation (super) contributions for the financial year 2024/25:-
Concessional Contribution Cap:
This is the maximum amount of pre-tax contributions an individual can make to their super fund each financial year. For 2024/25, the cap is $30,000, which represents an increase from the previous year’s cap of $27,500.
Non-Concessional Contribution Cap:
This is the maximum amount of after-tax contributions an individual can make to their super fund each financial year. In 2024/25, the cap is $120,000, up from $110,000 in the previous financial year.
Bring forward (non-concessional contribution) Cap:
This refers to the ability for individuals under a certain age to bring forward up to three years’ worth of non-concessional contributions in a single year without exceeding the non-concessional contribution cap. For 2024/25, the bring forward cap is $360,000, compared to $330,000 in the previous year.
CGT Cap Amount:
This is the maximum amount of capital gains that can be contributed into super upon the sale of certain small business assets. For 2024/25, the cap amount is $1,780,000, up from $1,705,000 in the previous year.
Division 293 Tax Threshold:
This threshold determines when individuals with high incomes are subject to an additional tax on their concessional contributions. There’s no change from the previous year, with the threshold remaining at $250,000.
Working with an accredited and qualified accountant and financial planner is important. You should consider whether it is appropriate in light of your particular objectives, financial situation or needs.
Our tax accountants work alongside our wealth management team to build the foundations necessary to provide a totally integrated financial approach for our clients. If you would like to book a free consult with our account managers, please reach out here.
