Super and tax rates and thresholds are increased according to movements in AWOTE and CPI each financial year.
The Australian Bureau of Statistics released the relevant CPI and AWOTE indices in January and February to set the 2023-24 financial year thresholds shown below.
How can I contribute to my super?
Topping up your super with an extra contribution – even if it’s only a small amount – can make a big difference over time. The beauty of making super contributions is the potential to pay less tax, while growing your super balance faster thanks to the power of compounding. Just keep in mind that there are limits to the amount you can contribute to super each year.
There are two ways you can add to your super: from your before-tax income or from your after-tax income.
Concessional contributions cap
$27,500
$27,500
Non concessional contributions cap
$110,000
$110,000
Lifetime CGT cap
$1.705m
$1.650m
Co-contribution lower income threshold
$43,445
$42,016
Co-contribution upper income threshold
$58,445
$57,016
Low rate cap
$235,000
$230,000
Untaxed plan cap
$1.705m
$1.650m
ETP cap
$235,000
$230,000
Genuine redundancy tax-free base amount
$11,985
$11,591
Genuine redundancy tax-free service years amount
$5,994
$5,797
SG 'maximum contributions base' per quarter
$62,270
$60,220
General transfer balance cap
$1.9m
$1.7m
Total super balance where non-concessional contributions cap is Nil
$1.9m
$1.7m
Total super balance must be less than threshold to be eligible for co-contributions
$1.9m
$1.7m
Total super balance must be less than threshold to be eligible for spouse contribution tax offset (TSB for spouse receiving eligible spouse contribution)
$1.9m
$1.7m
Defined benefit income cap
$118,750
$106,250
Non-concessional contributions: bring-forward thresholds
* Clients must be under age 75 on 1 July to trigger the bring-forward rule, and must not currently be in a bring-forward period.
Bring-forward triggered in 2023-24
Less than $1.68m
$330,000
At least $1.68m but less than $1.79m
$220,000
At least $1.79m but less than $1.9m
$110,000
$1.9m or more
Nil
Bring-forward triggered in 2022-23
Less than $1.48m
$330,000
At least $1.48m but less than $1.59m
$220,000
At least $1.59m but less than $1.7m
$110,000
$1.7m or more
Nil
Superannuation guarantee rates
Minimum Superannuation Guarantee rates are legislated to increase on 1 July 2023. This is a previously legislated increase and is not a result of indexation.
Percentage of OTE base per quarter per employee
11%
10.5%
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Disclaimer
The information contained in this update is based on the understanding Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) and Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) has of the relevant Australian laws as at the article date. As these laws are subject to change you should refer to our website at www.cfs.com.au or talk to a professional adviser for the most up-to-date information. The information is for adviser use only and is not a substitute for investors seeking advice. While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), no person, including AIL, nor CFSIL, accepts responsibility for any loss suffered by any person arising from reliance on this information. This update is not financial product advice and does not take into account any individual’s objectives, financial situation or needs. Any examples are for illustrative purposes only and actual risks and benefits will vary depending on each investor’s individual circumstances. You should form your own opinion and take your own legal, taxation and financial advice on the application of the information to your business and your clients.
Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.
AIL and CFSIL are also not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.