Crystal Wealth Newsroom
Superannuation changes for FY23/24
Super guarantee contributions increasing
The rate of superannuation has risen to 11% for the 2023-24 financial year, meaning all full-time, part-time, and casual employees over 18, as well as employees under 18 years and private domestic workers who work more than 30 hours will receive this new rate of super contributions from 1 July.
“The Government is aiming to move super guarantee contributions to 12 per cent of all salary earnings by 2025,” says Chris Murray, Senior Financial Adviser at Crystal Wealth Partners.
“Over the past 10 years, the rate has incrementally risen to help people build enough for their retirement. In 2013 it was 9 per cent, and it’s planned to increase to 11.5 per cent in July 2024 and 12 per cent in July 2025.”
Increase in pension minimum payments
Over the past three years, superannuation pension minimum amounts were halved by the Federal Government in response to COVID-19’s impact on investment markets. From 1 July, the pension drawdown rates reverted to the normal age-based minimums.
| Age at 1 July each year | Standard minimum drawdown rates from 1 July 2023 |
| Preservation age to 64 | 4% |
| 65 to 74 | 5% |
| 75 to 79 | 6% |
| 80 to 84 | 7% |
“If you don’t need the minimum withdrawal amount, there are a number of options, including investing your additional cash,” says Chris.
For more information on the increase in pension minimums, please read Pension minimum payments to increase to pre-COVID-19 rates.
Work test for personal super contribution deductions to cover wider a definition of employees
The ATO has issued a determination to ensure that tax deductions for personal super contributions after age 67 will continue to apply to officeholders and other workers who are not traditional employees.
To meet the work test, a person must be ‘gainfully employed’ for a period of 40 hours over a 30-day period in a financial year.
However, this meant that technically parliamentarians, local councillors, public office appointees, defence force personnel, directors, performers and contractors weren’t necessarily treated as ’gainfully employed’ for purposes of the work test.
“The ATO determination rectifies this by capturing the SISA expanded employee types and applies for contributions made from July onwards,” says Chris.
Total super balance increase
If you are commencing a new super pension in 2023/24, the cap will rise to $1.9m (from $1.7m) as part of indexation. This higher cap may also mean you can make further super contributions to build a tax-free retirement.
“Remember, new rules introduced in 2022/2023 mean you can contribute into superannuation up to age 75 if you are below the $1.9m cap,” says Chris. “As these rules are complex, please speak with your Crystal Wealth adviser for further information.”
Downsizing your home
If you are aged 55 or older, there is now the ability to use $300,000 from the sale of your home (as long as you owned it for 10 years) to contribute to superannuation.
“Previously, the age limit was 60, and before that, it was 65,” says Chris. “As a couple, it could mean adding $600,000 to boost your super savings.”
Personal taxation
There have been no changes to the tax rates from 1 July 2023 which remain as:
2023-24 Tax Scale
| Taxable Income | Tax On This Income# |
| 0 to $18,200 | Nil |
| $18,201 to $45,000 | 19c for each $1 over $18,200 |
| $45,001 to $120,000 | $5,092 plus 32.5c for each $1 over $45,000 |
| $120,001 to $180,000 | $29,467 plus 37c for each $1 over $120,000 |
| $180,001 and over | $ 51,667 plus 45c for each $1 over $180,000 |
# These tax rates do not include the Medicare levy of 2.0%
The Federal government will be introducing lower tax rates in the 2024/2025 tax year, with the brackets changing by eliminating the 37% tax band and raising the higher tax bracket to $200,000.
For more details, please contact your Crystal Wealth Partners financial adviser.