Super-size your savings: New rate hike adds more to your retirement bank!
- Replies 17
As Australians navigate through the ebbs and flows of financial planning, particularly in the golden years of retirement, staying informed about the changes that can impact our nest eggs is crucial.
For our savvy members at the Seniors Discount Club, understanding the ins and outs of superannuation is key to ensuring a comfortable and secure retirement.
Recently, there's been a significant update that deserves your attention.
The super guarantee rate has risen to 11.5 per cent as of July 1, 2024.
This uptick from the previous 11 per cent means that the compulsory superannuation contributions made by employers have increased, funnelling more money into your retirement savings.
According to Australian Taxation Office Deputy Commissioner Emma Rosenzweig, superannuation, often simply referred to as ‘super’, is one of the most vital investments for Australians.
However, numerous taxpayers remain unaware of what they are entitled to and what is required of them.
‘An increase to the super guarantee rate means more money going into your super,’ Ms Rosenzweig explained.
‘When it comes to your financial future, every bit counts.’
Employer superannuation contributions are typically paid at least quarterly, and it's worth noting that the rate is set to rise again to 12 per cent from July 2025.
This gradual increase is part of a government initiative to ensure Australians have sufficient funds when they retire.
Moreover, the concessional super contributions cap has also seen a rise from $27,500 to $30,000 per year.
This cap represents the amount you can contribute to your super each year without incurring additional tax, and it includes both employer and voluntary contributions.
For those looking to bolster their super further, the non-concessional super contribution cap has increased by $10,000 to $120,000 per year.
These are contributions made from after-tax income, and they offer another avenue to grow your retirement savings.
‘Boosts to concessional and non-concessional caps will now give individuals greater scope to make voluntary contributions,’ Ms Rosenzweig remarked.
‘Growing your super by making extra payments adds up over time.’
The ATO also urged taxpayers to become knowledgeable about their superannuation entitlements.
‘It’s important you remain engaged with your super through all stages of your life, not just when you are ready to retire,’ Ms Rosenzweig advised.
‘Take the time to check on your super regularly, or you could be missing out on the right entitlements.’
With the recent increase in the super guarantee rate, Australians can expect more contributions to their superannuation accounts, underscoring the need for individuals to understand their entitlements.
However, while focusing on maximising their super, taxpayers should also be aware of rising superannuation fraud cases.
Scammers are increasingly targeting superannuation accounts, and it's crucial to stay vigilant to protect your hard-earned savings.
Ensuring you are informed and alert can safeguard your financial future against potential scams.
Are you maximising your contributions? Are you aware of the tax benefits associated with super contributions? How are you planning to take advantage of the new superannuation rate increase? We invite you to share your experiences and tips with the community in the comments below.
For our savvy members at the Seniors Discount Club, understanding the ins and outs of superannuation is key to ensuring a comfortable and secure retirement.
Recently, there's been a significant update that deserves your attention.
The super guarantee rate has risen to 11.5 per cent as of July 1, 2024.
This uptick from the previous 11 per cent means that the compulsory superannuation contributions made by employers have increased, funnelling more money into your retirement savings.
The super guarantee rate in Australia increased to 11.5 per cent on July 1. Credit: Shutterstock
According to Australian Taxation Office Deputy Commissioner Emma Rosenzweig, superannuation, often simply referred to as ‘super’, is one of the most vital investments for Australians.
However, numerous taxpayers remain unaware of what they are entitled to and what is required of them.
‘An increase to the super guarantee rate means more money going into your super,’ Ms Rosenzweig explained.
‘When it comes to your financial future, every bit counts.’
Employer superannuation contributions are typically paid at least quarterly, and it's worth noting that the rate is set to rise again to 12 per cent from July 2025.
This gradual increase is part of a government initiative to ensure Australians have sufficient funds when they retire.
Moreover, the concessional super contributions cap has also seen a rise from $27,500 to $30,000 per year.
This cap represents the amount you can contribute to your super each year without incurring additional tax, and it includes both employer and voluntary contributions.
For those looking to bolster their super further, the non-concessional super contribution cap has increased by $10,000 to $120,000 per year.
These are contributions made from after-tax income, and they offer another avenue to grow your retirement savings.
‘Boosts to concessional and non-concessional caps will now give individuals greater scope to make voluntary contributions,’ Ms Rosenzweig remarked.
‘Growing your super by making extra payments adds up over time.’
The ATO also urged taxpayers to become knowledgeable about their superannuation entitlements.
‘It’s important you remain engaged with your super through all stages of your life, not just when you are ready to retire,’ Ms Rosenzweig advised.
‘Take the time to check on your super regularly, or you could be missing out on the right entitlements.’
With the recent increase in the super guarantee rate, Australians can expect more contributions to their superannuation accounts, underscoring the need for individuals to understand their entitlements.
However, while focusing on maximising their super, taxpayers should also be aware of rising superannuation fraud cases.
Scammers are increasingly targeting superannuation accounts, and it's crucial to stay vigilant to protect your hard-earned savings.
Ensuring you are informed and alert can safeguard your financial future against potential scams.
Last edited:
.png){kind=icon}
