VERY good news - superannuation caps will go up on July 1, the first time caps have been increased in three years.

From July 1, the concessional contribution cap will rise from $27,500 to $30,000, while the non-concessional cap will rise from $110,000 to $120,000.

In the meantime, the three-year bring forward limits will also increase from $330,000 to $360,000, unless they have been triggered by 30 June 2024. If they have, then the $330,000 limit will still apply.

The increase does not apply to the $1.9 million total super balance limit, however lower sub-limits will apply due to being based on the contribution caps.

This increase will be particularly beneficial for older workers as they are more likely to be able to make extra contributions. The higher caps could also prove valuable to people transitioning to retirement and retirees under 75, giving them extra firepower to top up their retirement savings and make the most of the favourable tax settings in the super system.

Those who are in a position to make use of the increased limits next financial year should give serious consideration to doing so, so speak to your financial advisor, or call Westmount.

Rick Maggi