Aspirations Insights: June 2024

AW constantly monitors the investment markets and aims to keep our valued clients regularly informed and updated. We aim to help investors cut through all the media noise and hype and understand what is really driving investment markets and portfolio returns.

In this edition, we cover:

  • Key Super Changes from 1 July 2024
  • Aspirations Wealth’s Support for Women and Families Fleeing Domestic Violence

Key Super Changes from 1 July 2024

Employer Super Guarantee (SG) Contributions:

Your employer will contribute more towards your super. If you’re a PAYG employee, your compulsory super guarantee (SG) payment will increase by half a percentage point to 11.5%.

Superannuation Contribution Caps:

There are annual caps – or limits – on how much money you can contribute towards super, both in terms of pre-tax ‘concessional’ contributions and after-tax ‘non-concessional’ contributions. Both these caps are going up, so if you have any spare funds, you’ll be able to move more of your money into super’s low-tax environment.

  • The concessional cap is increasing from $27,500 to $30,000 a year.
  • The non-concessional cap is increasing from $110,000 to $120,000 a year.

Personal Income Tax Cuts:

The Government’s long-awaited ‘stage 3’ tax cuts are coming into effect on 1 July 2024. While there have been well-publicised changes – lower income earners will receive a higher cut than originally proposed, while higher income earners will receive a lower cut – the bottom line is that all personal income taxpayers will pay less tax.

Minimum Pension Payment Drawdowns:

Depending on your age, there is a minimum amount you must withdraw as a pension payment from a super account-based pension each financial year.

As a reminder, these minimum pension payments are:

Aspirations Wealth’s Support for Women and Families Fleeing Domestic Violence

In 2022, following a move to Brisbane, our former paraplanner and compliance manager – Anne joined Peggy’s Place, a non-profit refuge for women and children transitioning from domestic violence crisis situations to independent living.

Peggy’s Place offers secure communal living, essential support services, and activities to help residents rebuild their lives and regain self-sufficiency. Alarmingly, over 9,000 women flee violent partners annually in Australia, often facing financial difficulties and a lack of immediate financial counseling.

Given the lack of financial counselling, Aspirations Wealth has agreed to sponsor Anne to undertake the approved Financial Counselling Course to provide Financial Counselling to women fleeing domestic and family violence.

Please click on this secure link to read more.

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Any advice contained in this insight/update is general advice only and does not take into consideration the reader’s personal circumstances. To avoid making a decision not appropriate to you, the content should not be relied upon or act as a substitute for receiving financial advice suitable to your circumstances. When considering a financial product please consider the Product Disclosure Statement. Aspirations Wealth Group is a Corporate Authorised Representative of Aspirations Private Wealth Pty Limited. ABN 57 622 182 076 – AFSL 503889.