Changes to Superannuation Limits in FY25

Published: 1-Nov-2024

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The Australian Government has announced changes to superannuation contribution limits for the 2024-2025 financial year.

Concessional Contributions:

• Limit has increased from $27,500 to $30,000 per year.
• Concessional contributions are pre-tax contributions such as employer payments, salary sacrifice or personal contributions claimed as a tax deduction.
• 15% tax is applied to the contribution and paid from your superannuation account.

Non-Concessional Contributions:

• Limit has increased from $110,000 to $120,000 per year.
• Non-concessional contributions are after-tax contributions made to superannuation.
• You cannot claim a tax deduction on these contributions.

Non-Concessional Contribution Bring-Forward Rule:

• Limit has increased from $330,000 to $360,000 over three years.
• This rule allows individuals to bring forward up to three years of non-concessional contributions in a single financial year, subject to certain conditions.

These changes provide an opportunity for individuals to increase their superannuation savings and potentially reduce their current tax liability. However, it's important to be aware that you cannot access contributed funds before meeting a condition of release such as reaching age 65.

You should consider your individual financial circumstances and seek professional advice before making any changes to your superannuation strategy.