With only months remaining of the 2023/2024 financial year, here are some key legislated changes and considerations.
2018/19 Unused Concessional Contributions – Use it or lose it!
Any unused concessional contributions (CC) cap amounts from 2018/19 will be lost if not used by 30th June 2024.
To be eligible you must meet all the following criteria:
Ie. To be eligible to contribute unused concessional cap amounts from 2018/19 your total superannuation balance must be less than $500,000 at of 30 June 2023.
If you are unsure if you have any unused CC cap amounts you can log into your MyGov account, click on ‘Super’ tab > ‘Information’ > ‘Carry-forward concessional contributions’. Once the page loads click ‘Show Details’ box. Or contact myself, Jess Robinson, to discuss further.
Example.
Alex had a super balance of $350,000 as of 30 June 2023. As Alex has been contributing less than the concessional cap over the past several years, Alex is eligible to contribute the Concessional Cap amount of $27,500 PLUS the Unusual concessional cap amount/s of up to $14,000 (2018/19 amount) to a maximum of $65,000 (total unused concessional contributions cap of the past 5 years).
| Financial Year | Concessional contributions cap | Concessional contributions (made by you or your employer) | Unused concessional contributions cap |
| 01/07/2022 – 30/06/2023 | $27,500.00 | $15,000.00 | $12,500.00 |
| 01/07/2021 – 30/06/2022 | $27,500.00 | $14,000.00 | $13,500.00 |
| 01/07/2020 – 30/06/2021 | $25,000.00 | $13,000.00 | $12,000.00 |
| 01/07/2019 – 30/06/2020 | $25,000.00 | $12,000.00 | $13,000.00 |
| 01/07/2018 – 30/06/2019 | $25,000.00 | $11,000.00 | $14,000.00 |
If Alex does not have any extra money to contribute to super, the 2018/19 unused CC cap amount will be unavailable from 1 July 2024, although assuming Alex meets the eligibility criteria, Alex will continue to be eligible to use any unused CC amounts from within the previous 5 financial years.
Work Bonus – rewarding pensioners over Aged Pension Age
As of 1st January 2024 the Work Bonus balance will permanently increase to a maximum of $11,800 (from $7,800) per annum.
The Work Bonus is the amount an eligible pensioner can earn from active participation in employed or self-employed work before it affects their pension payments.
The first $300 you earn from working a fortnight will not affect your pension.
If you do not work in any fortnight or earn less than $300 the unused amount will be added to your Work Bonus Income Bank. This is not cash you can withdraw.
If you earn more than $300 in a fortnight, the $300 fortnightly Work Bonus will be used, and any unused Work Bonus balance will be applied. If your Work Bonus balance is zero the income test will be applied to the remaining assessable income, which may reduce your pension payment for that fortnight.
If you choose not to work, you will still accrue the $300 Work Bonus each fortnight.
You must be Aged Pension age or over and receive one of the following pensions to be eligible for Work Bonus:
*Note, different rules may apply for each pension.
If you have any questions or would like to better understand how I may be able to assist you with your financial advice needs, please get in touch with me, Jess Robinson on 0475 952 178.
Reference:
ATO: ‘Concessional contributions cap’, 2 August 2023, https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/concessional-contributions-cap#Carryforwardunusedcontributions
Department of Social Services, ‘Work Bonus’, 22nd December 2023, https://www.dss.gov.au/seniors/programmes-services/work-bonus
