New Financial Year Reminders from Your Friends at First Super

This piece was written and provided by FTMA Supporting Partner, First Super.

Super Guarantee rate goes up from 1 July

A reminder to Employers – the superannuation guarantee (SG) rate will rise to 11.5% from 1 July 2024.

To work out how much you need to pay your employees, calculate the employees’ Ordinary Time Earnings (OTE) for the quarter and multiply by the SG rate – 11.5% from 1 July. You can make SG payments fortnightly, monthly or quarterly. There are quarterly payment deadlines.

Late SG payments can affect an employee’s insurance claims and there are also ATO penalties.

Find out more about First Super

Contributions caps are going up

Contribution caps are the limits on how much you can pay into your super fund each financial year without having to pay extra tax. The caps are going up for 24/25.

For FY 24/25:

The concessional (not yet taxed) contributions cap goes from $27,500 to $30,000.
The non-concessional (already taxed) contributions cap goes up from $110,000 to $120,000.

Concessional contributions are employer contributions, such as super guarantee and salary sacriﬁce contributions, and personal contributions made by the member for which the member claims an income tax deduction.

Non-Concessional contributions are personal contributions made by the member for which no income tax deduction is claimed – this is the most common type of non-concessional contribution.