August 2024 witnessed major changes to the Australian superannuation system to improve retirement security.
Rise in Superannuation Guarantee Rate: Your employer must contribute a minimum proportion of your salary to your super fund.
Higher Concessional Contributions Cap: This cap limits annual pre-tax super donations. The annual maximum rose from $27,500 to $30,000 in August 2024.
Increase Non-Concessional Contributions Cap: This cap restricts your annual after-tax super contribution. Your transfer balance cap may affect these contributions, which are tax-free.
Uniform Preservation Age: Your birth date determines your protection age between 55 and 60. All Australians will have a preservation age of 60 in August 2024.
Most Australians will have bigger superannuation funds because to the SG rate and contribution cap increases.
Higher superannuation accounts will help retirees live comfortably.