With the new financial year underway, several important changes to superannuation took effect from 1 July 2024. It’s a crucial time to give your super a thorough check-up. Your superannuation could potentially be one of your most significant assets, and regular assessments can help you make informed decisions for your financial future.

Superannuation Changes from 1 July 2024

  • Superannuation Guarantee Rate Increase: The superannuation guarantee rate has risen from 11% to 11.5%. This rate determines the minimum amount employers must contribute to their employees’ super based on their ordinary time earnings.
  • Maximum Super Contribution Base: The maximum super contribution base for employer contributions increased from $65,070 to $62,270 per quarter. This is the earnings threshold above which employers are not required to make super guarantee contributions.
  • Concessional and Non-Concessional Contributions Caps: The caps for concessional (before-tax) contributions increased from $27,500 to $30,000, and for non-concessional (after-tax) contributions, from $110,000 to $120,000.

Steps for Your Super Check-Up

The Australian Taxation Office (ATO) recommends the following steps to ensure your super is in good shape:

  1. Update Your Details: Confirm that your contact information and Tax File Number (TFN) are current with both the ATO and your super fund.
  2. Monitor Your Balance and Contributions: Regularly check your super balance and keep track of employer contributions, which you can do through ATO online services or directly with your super fund. Employers should be making super contributions at least quarterly.
  3. Find Lost and Unclaimed Super: If you’ve changed jobs or addresses, you may have lost track of some super accounts. Check for lost or unclaimed super using ATO online services via myGov.
  4. Consolidate Multiple Accounts: If you have multiple super accounts from changing jobs, consider consolidating them. This can reduce fees and simplify management.
  5. Nominate a Beneficiary: Ensure your super fund has a valid death beneficiary nomination, as this is not covered by your will. Check if your nomination has an expiry date, as some do lapse every few years.

Additional Considerations

  • Assess Fund Performance: Review how your super fund is performing and evaluate the fees you are paying.
  • Investment Strategy: Consider whether your investment strategy aligns with your life stage, risk tolerance, and personal values.
  • Insurance Cover: If you have insurance through your super, regularly review its suitability for your needs.

Taking these steps can help you manage your super effectively and make informed decisions to secure your financial future.

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