Grow your retirement savings in the new financial year

The start of the financial year 2024/25 will see some important changes to super. Here we explain how these changes could affect you, as well as how to make the most of them.

Check you are getting paid 11.5% super

From 1 July, your employer legally must pay 11.5% of your ordinary time earnings to your super (known as the Superannuation Guarantee), an increase of 0.5% from 2023/24.

While it might not sound like much, these small amounts can add up in the long-term due to the benefits of investment returns and compound interest. It’s worth checking your employer is paying the correct SG amount by logging into your firstonline account or the app and comparing the payments against your payslips.

Could you make extra super contributions?

The start of the financial year is a good time to review your finances and consider making extra super contributions if you are able to. For example, if you receive a pay rise, bonus or want to take advantage of the income tax cuts coming into effect from July 1, you could pay these amounts into your super. There are a few different ways to make extra contributions.

• Salary sacrifice is where you arrange for your employer to pay extra money into your super from your pre-tax salary. The benefit is your super payments are taxed at 15% instead of your personal income tax rate, and you are also reducing your taxable income
• You can also make payments from your after-tax salary and claim a tax deduction
• Or pay a lump sum into your super from your after-tax savings such as your bank account or an inheritance

Our contributions calculator can help you calculate the difference extra contributions can make over time.

Contribution caps are increasing

Contribution caps are the maximum amount of money the government lets you pay into your super each financial year without having to pay extra tax. From 1 July 2024, the caps are as follows:

Type of contribution	Concessional contributions: SG payments from your employer, salary sacrifice and tax-deductible contributions	Non-concessional contributions: payments from your bank account, inheritance or other earnings where you have already paid tax
Cap for 2024/25	$30,000	$120,000

Read more about additional super contributions on our voluntary contributions page.

Get the government to boost your super

More people could be eligible for the super co-contribution in 2024/25. Designed to boost the savings of low-and middle-income earners, you could receive up to 50c for every dollar you put in after tax, up to a maximum of $500. If you meet the eligibility criteria, including earning below $60,400 (previously $58,445) and make a voluntary contribution, a co-contribution will automatically be added to your super after you submit your tax return.

Top up your spouse’s super

If your spouse is taking time out of work to care for children, consider topping up their super to bridge the gap. If your spouse earns under $40,000, you could be eligible to top up their super with a spouse contribution and claim a tax offset.

Or you can top up your spouse’s super through contribution splitting. This is where you give your spouse some of your super by transferring a portion from your super account to your spouse’s account.

Could you benefit from the freeze on deeming rates?

If you receive the Age Pension or are wondering if you could be eligible, the freeze on deeming rates could be good news for you. The deeming rate is the rate of return the government assumes retirees earn on their investments. It determines whether a retiree is eligible for the Age Pension, and how much of a pension retirees can access.

The rate has been frozen for the last two years, with the top rate at 2.25 per cent. Now, the government has extended the freeze until June 30, 2025. Our Retirement Health Check can help you understand if you could be eligible for the Age Pension. Book an appointment here.

Need help?

Contact Member Services on 1300 360 988 if you have any questions.