super rules to keep in mind

here are a few super rules that could benefit you, depending on your current situation

After-tax contributions - bring forward rule

You can contribute up to $120,000 per year into your super using after-tax contributions. 

Eligible individuals may ‘bring forward’ two future years contribution caps and make a larger contribution. Eligibility to ‘bring forward’ will depend on your age and total super balance. Go to ato.gov.au/super to see if you’re eligible and what your cap might be. For example, this means you could put in up to three times the contribution cap in the first year (2024-2025) of $360,000 but won’t be able to make any more after-tax contributions for 3 years until 2027-2028.

There may be other limits on after-tax contributions depending on your account balance as well.

Read more about the bring forward rule on the ATO website.

Before-tax contributions - catch up rule

If your total super balance at 30 June of the previous financial year was less than $500,000, this may be worth knowing about.

If you contribute less than the before-tax cap in any year, you will be able to ‘carry-forward’ any unused amounts in up to 5 past years. This means you may be able to make additional before-tax (salary sacrifice) contributions that would have previously exceeded the cap for the current financial year.

Read more about the catch up rule on the ATO website.

First Home Super Saver Scheme

If you've never owned a property before, the First Home Super Saver Scheme (FHSSS) allows you to make extra contributions into super, using super's lower tax rates to help save for your first home. 

The Federal Government allows you to contribute extra money into your super (up to $15,000 per financial year), then draw that money out as a deposit on your first home. The maximum you can now contribute and withdraw towards the FHSSS is $50,000 across all years to put towards your deposit for your first home.

Find out more about the FHSSS

Downsizer contributions

You may be able to make a downsizer contribution of $300,000 per person into your super account if you sell your family home from age 55. Scaling back to unlock some extra cash can make sense. But adding six-figure sums to your super after age 55 does need some thought.

Find out more about downsizer contributions