Section
As we approach July 1, 2024, concessional and non-concessional contributions are set to undergo changes with increased caps coming into effect. These increases hold significant implications for contribution timing and pension commencement planning.
In this article, we’ll explore the revised limits and their potential impact, to help you understand the changes, and if they impact you.
Concessional and non-concessional contributions caps will increase as of 1 July 2024
- From 1 July the concessional contribution cap will increase from $27,500 to $30,000.
- The non-concessional contribution cap will increase from $110,000 to $120,000, for members balance less than $1.9M on 30 June 2024.
- The maximum non-concessional cap available under the bring-forward provisions will increase from $330,000 to $360,000*.
*Note – if you have either entered into a bring forward arrangement or inadvertently triggered the bring forward provision prior to 30 June 2024, perhaps by exceeding the concessional contribution cap, you will be bound by the previous limits of $110,000 per annum or up to $330,000 per annum over a three-year period.
Subsequently, you will need to wait for the three years period to expire, before becoming eligible for the new non-concessional contribution caps. You will not be able to top up the balance.
2024/2025 Bring Forward Eligibility
| Total Superannuation Balance (at 30 June 2024) |
Bring Forward Amount | Bring Forward Period |
| Less than $1.66 million | $360,000 | Three years |
| $1.66 million to less than $1.78 million | $240,000 | Two years |
| $1.78 million to less than $1.9 million | $120,000 | No bring forward |
| $1.9 million and above | $0 | N/A |
The general transfer balance cap remains unchanged at $1.9M. This is the maximum amount allowed to commence an income stream.
Pension and condition of release.
In order to access your members benefits or commence an account-based income stream, you are required to meet a condition of release.
An automatic condition of release applies once you turn 65 years of age. No specific retirement conditions are required.
Alternatively, the most common condition of releases includes the following:
- A member reaches preservation age (see table below) and ceases gainful employment, retires “permanently” or
- A member ceases at least one form of employment arrangement on or after the age of 60.
Members balances that meet the condition of release criteria, are moved from preserved benefits to unrestricted non-preserved and can be accessed at any point in time.
Permanent retirement means for those aged between 55 and 59, at the time you ceased employment you have no intention to return to the workforce either on a full-time basis or part time basis (working more than 10 hours per week).
If over the preservation age and older than 60 years of age, you are only required to retire from one form of gainful employment. This means that someone with two jobs can continue working with the second employer. Benefits can be accessed once employment in the first job has ceased. For example, a doctor who no longer works at one hospital but remains employed in another hospital can access benefits upon leaving the first hospital.
It’s important to highlight those contributions from the second employment, forming part of the member’s benefits, cannot be accessed. They will be designated as preserved benefits until either another employment ceases or the member turns 65. While unrestricted non-preserved benefits remain accessible, the new preserved balance cannot be accessed.
Preservation table
| Date of Birth | Preservation Age | Date reaches preservation age |
| Before 1 July 1960 | 55 | 1 July 2014 |
| 1 July 1960 – 30 June 1961 | 56 | 1 July 2016 |
| 1 July 1961- 30 June 1962 | 57 | 1 July 2018 |
| 1 July 1962 – 30 June 1963 | 58 | 1 July 2020 |
| 1 July 1963 – 30 June 1964 | 59 | 1 July 2022 |
| 1 July 1964 | 60 | 1 July 2024 |
Until 1 July 2024, the above preservation table was applicable for determining when individuals could access their benefits.
Starting from 1 July 2024, the preservation table will become redundant as individuals born before 1 July 1964 will reach the age of 60 and the only relevant test will be retiring from one form of employment after reaching the age of 60. This means it is easier to meet the retirment condition of release than it had been previously under the permanent retirement condition.
If you need any assistance with contribution planning and understanding how to access you super benefits without breaching the superannuation rules, we are here to help you.
For more information, please contact: Sharon Gdanski
