July 1st marks a significant turning point for top-rate taxpayers in Australia, presenting a golden opportunity to reclaim lost tax cuts and supercharge their retirement savings as contribution limits experience their first hike in three years.

The concessional contribution limit, symbolising the maximum amount from pre-tax income, will escalate from $27,500 to $30,000. Simultaneously, the non-concessional cap, dictating the threshold for contributions from after-tax pay or savings, will see a surge of $10,000, climbing to $120,000.

The catalyst for this adjustment stems from the Australian Bureau of Statistics’ revelation of a robust 4.5% increase in average weekly ordinary time earnings (AWOTE) in the year leading up to November, triggering a much-awaited revision in super caps.

This uptick arrives amidst a favorable landscape where many individuals are reaping the rewards of income boosts catalyzed by stage three tax cuts. Consequently, this juncture presents a ripe opportunity to redirect tax savings into super contributions, whether pre-tax or post-tax.

Moreover, for high earners, this serves as a strategic avenue to counteract the effects of recent tax legislation alterations. By harnessing available concessions, taxpayers can potentially recalibrate their tax position, mitigating the impact of reduced tax cuts and optimising their financial standing.

Indeed, this presents an inclusive opportunity for all individuals to amplify their superannuation contributions, laying a foundation for enhanced wealth accumulation in preparation for retirement. Leveraging the tax-effective environment offered by superannuation, with a modest tax rate of 15%, opens avenues for optimised returns and a bolstered asset base, while simultaneously reducing tax on income via Concessional Contributions.

If you believe you require advice on this, please contact Cadre Capital Partners to understand if this pertains to your situation.