New year, new rules: What you need to know about superannuation

As we enter a new financial year, it is time to consider the new rules for superannuation. We’ve outlined the key things you need to know about contributions and pensions for a successful year ahead.

Contribution caps

When making superannuation contributions, it is important to ensure that any contributions made remain within the prescribed caps and limits, to avoid paying additional tax.

The following outlines the general contribution caps for the new financial year ending 30 June 2024. It is important to note that these caps may differ based on your individual circumstances. To understand more about your individual contribution caps, speak to your local BDO adviser before making any changes to your superannuation.

Contribution Type


Concessional Contribution Cap


Non-Concessional Contribution Cap


Concessional Contributions

Concessional contributions are amounts paid into superannuation and, where eligible, can be claimed as a tax deduction. These amounts are included in the fund’s assessable income and include:

  • Employer contributions
  • Salary sacrificed contributions
  • Personal contributions for which the member is entitled to claim a tax deduction.

Members aged over 67, must fulfil the work test, which involves working at least 40 hours over a consecutive 30-day period during the financial year the contributions are made. This is a requirement for the contributions to be treated as personal concessional contributions, and for the deduction to be claimed in their personal tax returns.

If an individual’s total superannuation balance is less than $500,000, there may be an opportunity to utilise their carry forward unused concessional contribution caps. Allowing an individual to access any unused concessional contribution amounts from the last five years. Speak to your local BDO adviser to determine your eligibility.

Non-concessional contributions

Non-concessional contributions are voluntary after-tax contributions made into the fund and are tax-free. These can include:

  • Personal contributions where no tax deduction is claimed
  • Non-assessable amounts transferred from a foreign super fund
  • Contributions made in excess of the concessional contributions cap, which is left in the fund.

The following is also considered tax-free contributions, but do not count towards the non-concessional contribution limits:

  • Contributions made under a CGT retirement exemption election
  • Contributions made under a downsizer arrangement
  • Government contributions (including low-income super contributions & co-contributions).

The eligibility for making non-concessional contributions is determined by an individual’s total superannuation balance as of 30 June 2023.

Depending on an individual’s total superannuation balance and their eligibility to utilise the bring-forward rule, contributions in excess of the non-concessional caps can be made, with the utilisation of the bring-forward rule, which ‘brings forward’ up to two years of non-concessional caps. The general bring-forward limits are as follows:

Total Superannuation Balance at 30 June 2023

Maximum Allowable Contribution

(Triggering Bring-Forward Rule)

Less than $1.68 million


$1.68 million to $1.79 million


$1.79 million to $1.9 million


Super guarantee

The government’s plan to progressively increase the superannuation guarantee amount to 12 per cent by July 2025 continues, with the superannuation guarantee for employees increasing from 10.5 per cent to 11 per cent as at 1 July 2023. 

Individuals with pre-existing salary sacrifice arrangements should take extra care to ensure that the increase in superannuation guarantee paid by their employer does not result in them exceeding their concessional contribution caps of $27,500.

Income stream changes

From 1 July 2023, there are several changes affecting income streams paid from superannuation funds that must be taken into account to ensure your fund is continuing to meet its obligations.

Transfer balance cap indexation

From 1 July 2023, the general transfer balance cap is due to increase to $1.9 million.

Individuals who are looking to commence their first retirement phase income stream (pension) from 1 July 2023 onwards will have a transfer balance cap of $1.9 million, whilst individuals who commenced their pensions prior to this will have a personal transfer balance cap between $1.6 million to $1.9 million.

Minimum pensions ceasing

As a result of COVID-19, the Australian Government introduced a temporary 50 per cent reduction in minimum pension payments.

30 June 2023 saw the cessation of this reduction in minimum pensions, and all future minimum pensions will revert to the original minimum pension requirements:

Age at 1 July

Minimum Withdrawal

Under 65


65 – 74


75 – 79


80 – 84


85 – 89


90 – 94


95 and over


When making pension payments for the year ahead, make sure you’re factoring in the above minimum withdrawal amounts to avoid tax implications.

Transfer balance account quarterly processing

From 1 July 2023, all members with pension balances must report all Transfer Balance Account movements quarterly.

Common reportable transfer balance account movements include:

  • The commencement of new pensions, including death benefit pensions
  • The commencement of reversionary pensions 12 months from the time the individual is entitled to receive the pensions
  • Ceasing a pension (known as a full commutation)
  • Taking a lump sum out of the pension (known as a partial commutation).


To make the most out of your super and ensure you are considering the changes outlined in this article, use these steps as your checklist:

  • Check with your local BDO adviser about your relevant contribution caps for the year ahead
  • Ensure all salary sacrifice agreements have been reviewed to ensure that you are not exceeding your contribution caps with the increase in superannuation guarantee
  • If making pension payments, ensure that you are factoring in the appropriate minimum withdrawal percentage
  • If commencing, ceasing, or commuting from pensions, contact your local BDO adviser to ensure the relevant transfer balance account movements are reported.

How we can help

As the rules around contributions and pensions can vary greatly depending on individual circumstances, we recommend contacting your local BDO adviser before making contributions or taking pension payments to ensure all the relevant caps, requirements and documentation needs are met.

The information contained in this publication is purely factual in nature and does not take into account your personal objectives, financial situation or needs. It is provided as an information service only and does not constitute financial product or other professional advice and should not be relied upon as such. Before making any investment or financial decisions you should consider your particular objectives, and financial circumstances or needs. Where information relates to a particular financial product you should obtain and consider the relevant Product Disclosure Statement and obtain advice from a financial adviser before making any decision. If you do require financial advice, please contact the relevant BDO member firms in Australia who will be able to assist you in their capacity as an Australian Financial Services licensee. BDO Australia Ltd and each BDO member firm in Australia, their partners and/or directors, employees and agents do not give any warranty as to the accuracy, reliability or completeness of information contained in this publication nor do they accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it, except in so far as any liability under statute cannot be excluded.

BDO refers to one or more members of a national association of separate entities who are all members of BDO Australia Limited, an Australian company limited by Guarantee. BDO Australia Ltd and its members are independent member firms of BDO International Ltd, a UK company limited by guarantee. Each BDO member firm in Australia is a separate legal entity and has no liability for another entity’s acts and omissions. Liability limited by a scheme approved under Professional Standards Legislation. 

BDO is the brand name for the BDO network and for each of the BDO member firms.