There are a number of superannuation changes that will take effect on the 1st of July 2021. We’ve summarised the key ones below:
Superannuation guarantee increase to 10%
On the 1st of July 2021, the superannuation guarantee will increase from 9.5% to 10%.
Contribution cap increases
There are caps on the amount that can be paid into your super account in a financial year. If you contribute more than these caps, you may have to pay extra tax. On the 1st of July 2021, these caps are increasing:
- The cap for concessional contributions will increase from $25,000 to $27,500, and
- The cap for non-concessional contributions will increase from $100,000 to $110,000.
General transfer balance cap increase
The transfer balance cap is the maximum total amount of superannuation that can be transferred into the retirement phase. If you have more than one super account, the combined balances are used to calculate this amount.
On the 1st of July 2021, the general transfer balance cap will increase from $1.6 million to $1.7 million.
Further detail is available on the Australian Taxation Office website.