Superannuation is a vital component of your financial future, and staying informed about the latest changes and deadlines can make a significant difference in your retirement savings. Here are three important superannuation tips to keep in mind for 2024:

1. Tax Deduction Deadline

One of the most effective ways to boost your superannuation is by making additional contributions and claiming a tax deduction. For the 2024-2025 financial year, the deadline to make these contributions and still claim a tax deduction is 30 June 2025.

How to Benefit:

  • Personal Contributions: You can contribute up to $27,500 (including your employer’s Super Guarantee contributions) to your superannuation and claim a tax deduction.
  • Lodging Your Intention: Ensure you submit a Notice of Intent to claim a deduction form to your super fund before you lodge your tax return.
  • Reducing Taxable Income: These contributions can reduce your taxable income, potentially lowering your tax bracket and increasing your overall tax refund.

2. Super Guarantee Rate Increase

The Super Guarantee (SG) rate, which is the minimum percentage of your earnings that your employer must contribute to your superannuation, has increased from 11% to 11.5% effective 1 July 2024.

What This Means for You:

  • Increased Contributions: Your employer will contribute a higher percentage of your salary into your superannuation, boosting your retirement savings without any additional effort on your part.
  • Check Your Payslip: Ensure that your employer is correctly calculating and contributing the new SG rate from the start date.
  • Plan Accordingly: If you are on a salary package, discuss with your employer how the increase might affect your overall pay.

3. Payday Super Implementation

From 1 July 2024, employers are required to pay superannuation contributions at the same time as their employees’ regular pay cycle, rather than quarterly. This change, known as “Payday Super,” aims to improve the frequency and transparency of super contributions. Payday super is applicable to large businesses, not small business until 1 July 2025

Advantages of Payday Super:

  • Timely Contributions: Your superannuation balance will grow more consistently and potentially earn more interest due to more frequent contributions.
  • Easier Tracking: It’s easier to track contributions and ensure that your employer is meeting their obligations.
  • Financial Planning: With more regular contributions, you can plan your finances and retirement savings more accurately.

Conclusion

Staying on top of these superannuation tips can help you maximise your retirement savings and take full advantage of the benefits available to you. Make sure to mark your calendar for key deadlines, monitor the changes in your contributions, and ensure your employer is compliant with the new regulations.

For personalised advice and to ensure you’re making the most of your superannuation, consider consulting with a financial adviser.

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