Superannuation Changes From 1 July 2024: Time for a Super Check-Up
The new financial year has begun, and with it have come some important changes to superannuation from 1 July 2024. With these changes now in effect, it’s a good time to give your super a check-up.
Superannuation could be one of the biggest assets you ever accumulate. Getting into the habit of reviewing your super regularly can help you stay informed, identify issues early and make better decisions for your future.
Key Superannuation Changes From 1 July 2024
Several changes took effect at the start of the 2024–25 financial year.
Increase to the Superannuation Guarantee Rate
From 1 July 2024, the superannuation guarantee (SG) rate increased from 11% to 11.5%. Employer super contributions are calculated on a worker’s ordinary time earnings for payments of salary and wages.
Maximum Super Contribution Base
For employers, the maximum super contribution base changed from $65,070 to $62,270. This base limits how much you can earn each quarter before your employer is no longer required to make super guarantee contributions.
Higher Contribution Caps
The concessional super contributions cap increased from $27,500 to $30,000. The non-concessional contributions cap also increased, rising from $110,000 to $120,000.
How to Give Your Super a Check-Up
The ATO recommends the following steps as a practical starting point when reviewing your superannuation.
Step 1 – Check Your Contact Details
Ensure your contact details and tax file number are up to date with both the ATO and your super fund. This helps prevent lost or unclaimed super and ensures you receive important communications.
Step 2 – Check Your Super Balance and Employer Contributions
You can check your super balance and track employer contributions at any time through ATO online services or directly with your super fund. Employers are required to pay super at least every three months, although some choose to pay more frequently.
Step 3 – Check for Lost and Unclaimed Super
If you have changed your name, address or job, you may have lost track of some of your super. Lost super occurs when a fund cannot contact you or your account becomes inactive. Unclaimed super is transferred from the fund to the ATO.
You can check for lost or unclaimed super by logging into ATO online services via myGov, noting that new super accounts may take some time to appear.
Step 4 – Review Multiple Super Accounts
If you have changed jobs over time, you may have multiple super accounts. Each account may charge fees and include insurance cover. Consolidating your super accounts can help reduce fees, ensure you only pay for insurance you need and make your super easier to manage.
Step 5 – Check Your Beneficiary Nomination
Make sure you have a valid death benefit nomination in place with your super fund, as superannuation is not covered by your will. Check whether your nomination has an expiry date, as many nominations expire every three years, while some funds offer non-lapsing options.
If you do not nominate a beneficiary, your fund will distribute your super according to the law, which may not reflect your wishes. This is also a good time to review your fund’s performance and ensure you are not paying excessive fees.
Review Investments and Insurance
You may also want to review how your super is invested. Consider whether your investment option suits your stage of life, risk tolerance, and personal values or ethics.
If you hold insurance through your super fund, regularly review the cover to ensure it still meets your needs and provides appropriate protection.
If you would like help reviewing your super or understanding how these changes affect your situation, professional advice can help you make informed decisions and stay on track for retirement.
Speak to one of our accountants if you have any questions about the changes in tax for 2024.
