From 1 July 2023, there have been some updates to your super.
Here are two changes that might affect you:
1. The super guarantee is increasing to 11%
From 1 July 2023, the super guarantee increased from 10.5% to 11%. This is the amount that your employer must contribute into your super account.
The 11% super guarantee will begin to apply for earnings (overtime excluded) after 1 July. The first super quarter this rate will apply to will be 1 July 2023 – 30 September 2023.
If you are under 18, you still need to work 30 hours in a week to be eligible for super.
What to check:
- Your payslips for any super earned after 1 July 2023 is calculated at 11%.
- Your super account after 28 October 2023 to make sure your super is actually paid into your account.
2. The government co-contribution income thresholds are increasing
The government co-contribution scheme is an incentive for individuals to make personal contributions to their super account. The government co-contributes up to 50c for every $1 you contribution, capped at $500. The co-contribution decreases progressively as your income increases.
The lowest income threshold has increased to $43,445 p.a. and highest income threshold has increased to $58,445 p.a. This could mean you’re eligible to receive the co-contribution this financial year!
| Financial Year | Lowest income threshold | Highest income threshold |
|---|---|---|
2023-24 (1 July 2023 – 30 June 2024) | $43,445 p.a. | $58,445 p.a. |
For example, if you make a $100 personal contribution into your super account and you earn below $43,445 p.a., you could be eligible for the best rate of co-contribution. The government will contribute $50 into your super account. This happens automatically when you lodge your tax return.
What to do next:
If you weren’t eligible for the co-contribution before, you could be now! Check your annual salary and see if you can take advantage of this government incentive for the 2023-24 financial year. Additional eligibility criteria applies, see the ATO website.
This wraps up the two changes that could be relevant to you! It’s important to know what might affect you and what incentives you might be eligible for this financial year.
3. More people are eligible for the downsizer contribution
Downsizer contributions are where you use the proceeds of a property sale (subject to eligibility rules) to contribute to your super account. These contributions do not count towards your non-concessional cap. As a single person, you can contribute up to $300,000 as a downsizer contribution, or up to $600,000 for couples.
This took effect from 1 January 2023 – the eligibility age for downsizers to top up their super has been reduced from 60 to 55.
For more information, visit the ATO website.
