Draw your minimum pension before year end
If you are already drawing a superannuation pension, please ensure that your fund has paid you the minimum pension before 30 June 2024. The minimum pension for the year is based on a percentage of your fund member balance as at 1 July 2023, or, if you started your pension during the year, it is based on pro-rata amount. The minimum pension percentage factor for the 2023-24 year is as follows:
Age % of Account Balance (2023 – 24)
55-64 4.00
65-74 5.00
75-79 6.00
80-84 7.00
85-89 9.00
90-94 11.00
95+ 14.00
2023 - 2024 Maximum Contributions
Concessional contributions
The current 2023-2024 tax deductible cap is $27,500.
This cap is inclusive of any compulsory employer contributions made on your behalf (currently 11% but set to increase to 11.5% from 1 July 2024).
Those earning more than $250,000 will pay an additional 15% contributions tax on their concessional contributions.
If you are age 67 and over, you need to satisfy a work test of gainful (paid) employment of at least 40 hours in a consecutive 30-day period during the financial year in order to be eligible to make personal concessional contributions to superannuation.
If you are over age 75, only mandated or compulsory super guarantee contributions are permitted.
Non-concessional contributions
The 2023 - 2024 non concessional contributions cap is $110,000 or $330,000 brought forward over 3 years.
A non-concessional contribution of $330,000 brought forward over 3 years would only be applicable for those people that have not exceeded their annual non-concessional contribution cap of $110,000 in the prior 2 financial years.
If you are over age 75, non-concessional contributions are not permitted.
Individuals with total superannuation balances of $1.9m or more on 1 July 2023 are not eligible to make non-concessional contributions to superannuation this financial year.
Individuals aged 67 to 74 years with total superannuation balances below $300,000 can make voluntary contributions to their superannuation for 12 months from the end of the financial year in which they last met the work test.
It’s all about timing
If you are making a contribution, the funds must hit the super fund’s bank account by the close of business on 30 June. Some clearing houses hold on to money before presenting them to the super fund, so we suggest you organise contributions 2 weeks prior to the deadline.
In addition, pension payments must leave the account by the close of business 30 June.
If you have any queries or would like to discuss your SMSF pension or contribution, please give us a call on 03 9584 2277.