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SMSF Updates

Maximize Your Retirement Savings: 2024/25 Superannuation thresholds Update

12 Apr, 2024

Welcome to the latest update on superannuation contribution caps for the 2024/25 financial year! Staying ahead of these changes is crucial for anyone planning their retirement strategy. Let’s dive into the recent updates and understand how they can benefit your financial future.

1. Concessional Contribution Cap Increased to $30,000

Great news for boosting your retirement savings! The concessional contribution cap has been raised to $30,000 for this financial year. This means you can now maximize your tax-effective contributions from your employer or through salary sacrifice arrangements.

2. Non-Concessional Contribution Cap Expanded to $120,000

Take advantage of the increased flexibility with the non-concessional contribution cap now set at $120,000. This higher limit allows you to make after-tax contributions without worrying about additional tax implications, empowering you to take control of your retirement nest egg.

3. Accelerate Your Savings with the Bring Forward Cap at $360,000

Supercharge your retirement savings journey with the enhanced bring-forward provision, now allowing contributions up to $360,000 over three years. This provision enables you to make larger contributions strategically, maximizing your super without exceeding the non-concessional contribution cap.

4. Transfer Balance Cap Maintained at $1,900,000

While the transfer balance cap remains unchanged at $1,900,000, it’s vital to stay within this limit to avoid excess transfer balance tax liabilities when transferring funds into a tax-free retirement phase account.

5. Capital Gains Tax Cap Increased to $1,780,000

Entrepreneurs, take note! The capital gains tax (CGT) cap has been adjusted to $1,780,000. This allows eligible individuals a tax-effective means to contribute proceeds from the sale of business assets into their super, supporting their retirement planning endeavors.

6. Division 293 Tax Threshold Remains at $250,000

High-income earners, ensure effective tax planning by keeping Division 293 tax threshold in mind. It remains steady at $250,000, emphasizing the need to strategize concessional super contributions effectively.

7. Low Rate Cap Enhanced to $235,000

Unlock favorable tax treatment for your retirement withdrawals with the low rate cap increased to $235,000 for individuals aged 60 and over. This concession allows eligible individuals to access their super benefits with reduced tax obligations, supporting retirement income needs.

8. Preservation Age and Pension Drawdown Rates – Important Factors to Consider

While not subject to changes this year, remember the preservation age and pension drawdown rates, which dictate when you can access your super and the minimum amount you must withdraw each year.

In summary, these updates present exciting opportunities to optimize your retirement savings strategy. By leveraging these changes effectively, you can pave the way towards a financially secure retirement. Stay informed, plan strategically, and maximize your retirement savings potential!

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