The 1 July changes impacting your money

From 1 July 2024, several changes have been rolled out that will impact your super fund and your take home pay. Most notably, your employer will be paying 0.5% more super into your account under changes to the superannuation guarantee.

Employers pay more super

The superannuation guarantee is the percentage of your wage your employer is legally required to pay into your super account. From 1 July 2024, it increases to 11.5% from 11% - that likely means more super in your account each pay check.

The government has legislated the superannuation guarantee to settle at 12% in 2025, so after several successive rises you’ll see another 0.5% rise on 1 July 2025 and then we shouldn’t see any further increases to the guarantee for some time.

What does this mean for me?

Some employers pay super on top of your wage or salary, and some include the superannuation guarantee in your pay. If you are on a contract where super is included in your pay, then unfortunately your take-home pay will decrease in line with the increase to your super payments unless your employer increases your pay.

Paying super on top of salaries, rather than inclusive, is a fairer way for employers to operate considering the legislated increases to the superannuation guarantee. It’s also something you are well in your rights to ask about and advocate for during job interviews and negotiations.

Tax cuts

This year 13.6 million Australians will have more money in their pocket thanks to widespread tax cuts. It’s part of the government’s measures to provide some cost-of-living relief.

What does this mean for me?

Tax on annual earnings between $18,201 – $45,000 decreases from 19% to 16% and on earnings between $45,001 – $135,000 it decreases from 32.5% to 30%.

You can calculate just how much tax you’ll save over the financial year by using this Tax Cut Calculator.

All Australian taxpayers are entitled to the tax-free threshold of $18,200 – so the first $18,200 you earn is tax free each year.

If you earn, for example, $75,000 a year your income between $18,201 and $45,000 will then be taxed at 16% (down from 19%). The final $29,999 of your taxable income will be taxed at 30% (down from 32.5%). Because income tax works in this way, even higher income earners who earn over $135,000 a year will benefit from these tax cuts .

Tax cuts and putting more in your super

If you earn $60,000 per year (before tax) the tax cuts mean you’ll get an extra $22 in your pay packet each week.

By taking advantage of salary sacrificing and making voluntary contributions into your super account, you could grow your super, pay less tax and still take home more pay than you did last financial year.

 For example, if you added $10 a week to your super before tax this financial year, you’d still be taking home $16 a week more than last financial year.

This can be a tax-effective way to save for your retirement, but keep in mind that you won’t be able to access that money until you reach retirement age or meet other super withdrawal criteria.

Making voluntary contributions to super isn’t going to be the right decision for everyone. But if your goal is to grow your balance, it might be worth considering.

Concessional contribution cap increases

The concessional contribution cap will be bumped up from $27,500 to $30,000 from 1 July. That means you can now make voluntary contributions of up to $30,000 before tax.

What does this mean for me?

You can make contributions of up to $30,000 into your super account and you’ll be taxed on those contributions at the concessional rate of 15% rather than your normal income tax rate. 

Concessional contributions work out as a tax-effective way to save because for all income earners in Australia earning over $45,000 a year the income tax rate is more than 32%. The concessional contributions tax rate is only available to those earning less than $250,000 a year. 

Note: Tax calculations do not take into account the medicare levy.