Super changes from 1 July 20231 min 10 secs read
The start of the new financial year also brought some changes to a few super rules. Here’s a quick look.
- More super for you
From 1 July 2023, the Superannuation Guarantee (SG) rate increased to 11%.
It will continue to increase by 0.5% on 1 July each year until it reaches 12% from 1 July 2025 onwards.
- The Transfer Balance Cap went up
The Transfer Balance Cap refers to the maximum you can transfer to a tax-free pension product. From 1 July 2023, this cap increased from $1.7 million to $1.9 million.
- The temporary reduction in minimum drawdown is no more
The temporary reduction in pension minimum drawdowns ended on 1 July 2023.
A measure introduced to support retirees during the COVID-19 pandemic, it allowed retirees to only withdraw 50 per cent of their account balance, should they choose, for the 2019–20, 2020–21, 2021–22 and 2022-23 financial years.
For more details on these and other super rules, check out the Rates and thresholds page.