What are the new laws coming into effect from 1 July 2023?
Super Guarantee
- Super Guarantee (SG) is a contribution that your employer is required to make to your superannuation. The Superannuation Guarantee (SG) rate will increase from 10.5% to 11% from 1 July 2023 and is legislated to increase by 0.5% on 1 July each year until reaching 12% in 2025.
Minimum Pension Payments
- The temporary reduction to pension minimum drawdown rates that was implemented as part of the Government’s COVID-19 response ceased on 30 June 2023. This means that pension minimum drawdown rates will revert back to the standard minimum rates from 1 July 2023 as shown below.
| Age on 1 July | 2019-20 to 2022-23 income years (inclusive) | 2023-2024 income years and onwards |
|---|---|---|
| Under 65 | 2% | 4% |
| 65-74 | 2.5% | 5% |
| 75-79 | 3% | 6% |
| 80-84 | 3.5% | 7% |
| 85-89 | 4.5% | 9% |
| 90-94 | 5.5% | 11% |
| 95 or more | 7% | 14% |
General Transfer Balance Cap
- The general transfer balance cap will increase from $1.7 million to $1.9 million for the 2023-24 financial year. Individual members may have a personal transfer balance cap which differs from the general transfer balance cap due to timing and indexation impacts. You can find your transfer balance cap amount by logging into the ATO portal via myGov.
- The increase also means you may have the opportunity make more non-concessional contributions.
Carry-Forward Contributions
- The carry-forward contribution rules allow you to access unused concessional contributions from the previous 5 years, so long as your balance is under $500,000 at 30 June. 2023-2024 is the last financial year in which you can access unused concessional contributions from the 2018-19 FY.
Child-Care Subsidy
- From July 10, more families will be eligible for the childcare subsidy with the family income threshold increasing significantly from $356,756 to $530,000.
- Childcare subsidy rates will also increase for every family (with one child in care) earning less than $530,000. Higher subsidy rates for second and additional children in care will be maintained.
Contact your adviser to see how these changes may affect your circumstances.
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