Super contribution caps about to rise.

The concessional and non-concessional contribution caps are set to increase for the 2025 income year, as set out below.

• From 1 July 2024, the concessional contribution cap will increase from $27,500 to $30,000; and
• From 1 July 2024, the non-concessional contribution cap (which is set at four times the concessional contribution cap) will increase from $110,000 to $120,000. This means that the maximum available under the three-year bring forward provisions will increase from $330,000 to $360,000, provided that the 'bring forward' is triggered on or after 1 July 2024.
• The 'total superannuation balance' ('TSB') threshold for making non-concessional contributions (and the pension general transfer balance cap) will remain at $1.9 million for the 2025 income year. However, from 1 July 2024, the TSB thresholds used to determine the maximum amount of bring-forward non-concessional contributions available to an individual will be adjusted, to reflect the increase in the non-concessional contributions cap

It is the first time in three years that the contribution caps have been raised.

SMSF Association CEO Peter Burgess said "These changes were expected and alongside the stage three tax cuts applying from 1 July 2024, mean some may have additional disposable income to contribute more to super."

For more information, visit the SMSF Association website.

Ref: SMSF Association Media Note, 22 February 2024