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Published on 29 June 2023From 1 July, there are changes to super—such as the increase to superannuation guarantee contributions, changes to minimum pension withdrawal amounts, and more.
The superannuation guarantee (SG) increased to 11 percent from 1 July 2023 from the previous rate of 10.5 per cent. This change affects all workers and employers in Australia.
Employers are required to make super contributions into each employee’s super account at the increased rate of 11 per cent of their annual salary.
Employees making extra contributions such as need to ensure they do not exceed the concessional contributions cap.
We encourage our members and employers to get in touch if they have any questions about how this change affects them.
In response to the pandemic, the government temporarily reduced the minimum amount Income Stream members can withdraw from their super each year. The reduced rates only applied until 30 June 2023, and increased from 1 July 2023.
|
Minimum withdrawal amounts (pension/income stream) |
||
|
Age |
Financial year 2022-23 |
From 1 July 2023 |
|
<65 |
2.0% |
4.0% |
|
65–74 |
2.5% |
5.0% |
|
75–79 |
3.0% |
6.0% |
|
80–84 |
3.5% |
7.0% |
|
85–89 |
4.5% |
9.0% |
|
90–94 |
5.5% |
11.0% |
|
95+ |
7.0% |
14.0% |
The transfer balance cap (TBC) limits the tax-free amount a retiree can transfer into a super pension account. From 1 July 2023, this increased from $1.7 million to $1.9 million.
Your total super balance on 30 June had to be less than the TBC to qualify for non-concessional contributions or be eligible for a co-contribution next financial year. Different rules apply to those with a defined benefits income stream.
If you have questions about the changes to super, call us on 1800 675 839 between 8am and 8pm AEST Mon–Fri or email us at administration@primesuper.com.au
This article is current at the date of publication and is subject to change. It contains general information and does not take account of your specific objectives, financial situation or needs or personal circumstances. You should seek professional financial advice, consider your own circumstances and read our Product Disclosure Statement (PDS) before making a decision about Prime Super. For a PDS and Target Market Determination call 1800 675 839 or visit the primesuper.com.au/pds. Prime Super Pty Ltd ABN 81 067 241 016 AFSL 219723 RSE L0000277 (Trustee), Prime Super ABN 60 562 335 823 RN 1000276.
