The super guarantee rate goes up

The super guarantee is the amount your employer must pay into your superannuation fund.  The amount paid is a percentage of your gross salary.

On 1 July 2023, the rate of super paid by employers increased to 11%.  From 1 July 2024, this will increase again, and all employers will be required to pay 11.5% of your gross salary.

First home super savers scheme

The First home super savers scheme (FHSSS) allows you to use some of your eligible voluntary super contributions to help you purchase your first home.

Under the FHSSS, if you meet the eligibility requirements, you can have your voluntary super contributions released up to a maximum of $15,000 from any one financial year.  This is subject to an overall maximum of $50,000 of contributions across all years.

From 15 September 2024, changes are being made to the FHSSS, which make it less restrictive for users:

  • Individuals can amend or withdraw their request prior to receiving a FHSSS payment. If you withdraw your application, you can reapply later.
  • Individuals can apply for an FHSSS determination after signing a contract to buy their first home, as long as the contract has not settled.
  • If you change or withdraw your application, the Commissioner of Taxation can return the released FHSSS amounts to your super fund, provided that the money has not yet been released to you. It will be reinvested with the same tax proportions and will not count towards any contribution limit.
  • The time limit to apply for a FHSSS amount after signing a contract will increase from 14 days to 90 days.

In addition, there are some transitional rules in place for three years for those that had their FHSSS application rejected because the application deadline was missed after signing your purchase contract.  These individuals can reapply.

For more information on the FHSSS click here.

Related changes announced in the Federal Budget

Super on Government Paid parental Leave

In March this year, the Government announced that from 1 July 2025 it will make superannuation contributions on Government-funded Paid parental Leave payments.

The Federal Budget has allocated $1.1 billion over 4 years to make these payments to parents of babies born or adopted on or after 1 July 2025.  Payments will be made annually as a contribution to eligible individuals’ superannuation funds from 1 July 2026, based on the Superannuation Guarantee rate.

Social security – Freezing of Social Security Deeming Rates

The Government announced that they will freeze social security deeming rates at their current levels for a further 12 months until 30 June 2025, to support Age Pensioners and other income support recipients who rely on income from deemed financial investments, as well as their payment, to manage cost of living pressures.