Last week, with the release of the November 2023 AWOTE rates, the government has announced the concessional and non concessional contribution caps to use from 1 July 2024. Interestingly, while contribution caps will increase, the general Transfer Balance Cap will not change in July (a result of being linked to inflation and not AWOTE). This means the thresholds for the bring forward arrangements will actually decrease. It is important Trustees have a good understanding of TSB (“Total Superannuation Balance”) given eligibility for bring forward and non-concessional contributions is tested against the thresholds and this amount.
The new contribution caps from 1 July 2024 (in comparison to the 2024 year) will be as follows:
| Contributions | Threshold 2023 – 24 | Threshold 2024 – 25 |
| Concessional Contributions | $27,500 | $30,000 |
| Non-Concessional Contributions (NCC) | $110,000 | $120,000 |
| General Transfer Balance Cap | $1,900,000 | $1,900,000 |
The bring forward provisions from 1 July 2024 (in comparison to the 2024 year) will be as follows:
| Bring Forward Non Concessional Contributions – 2024 Financial Year | ||
| Total Superannuation Balance on 30 June 2023 | Non-Concessional Contribution Caps for the First Year | Bring Forward Period |
| Less than $1.68 million | $330,000 | 3 Years |
| $1.68 million to less than $1.79 million | $220,000 | 2 Years |
| $1.79 million to less than $1.9 million | $110,000 | No bring forward period, general non-concessional cap applies |
| $1.9 million or more | Nil | N/A |
| Bring Forward Non Concessional Contributions – 2025 Financial Year | ||
| Total Superannuation Balance on 30 June 2024 | Non-Concessional Contribution Caps for the First Year | Bring Forward Period |
| 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 | No bring forward period, general non-concessional cap applies |
| $1.9 million or more | Nil | N/A |
