Increase in Super Caps from 1 July 2021

|by Elsa Howarth|Self Managed Super Funds

Concessional and Non-Concessional Contribution Caps

From 1 July 2021, the concessional and non-concessional contribution caps are set to increase due to indexation for the first time ever since July 2017.

The concessional contribution cap, originally set at $25,000 from 1 July 2017, is indexed by average weekly ordinary time earnings (AWOTE) in increments of $2,500.

With the announcement of the AWOTE figure for the December 2020 quarter, the concessional contribution cap is set to increase from $25,000 p.a. to $27,500 p.a. from 1 July 2021.

The non-concessional cap in 2021–22 will see the standard cap increased from $100,000 to $110,000 from this date.

In addition, the maximum amount a member who was under 65 at the start of the year can contribute under the non-concessional contribution cap bring-forward rule is also set to increase from $300,000 to $330,000 from 1 July 2021.

Transfer Balance Account

Also increasing on 1 July 2021 is the Transfer Balance Cap. It is increasing by $100,000 to $1.7m.

This increase will impact both people in and/or about to enter retirement phase as well as people who are considering escalating their contributions in the near future.

Advice

The impact of the increases will affect people in different ways and for different reasons. Cordner Advisory’s expert SMSF advisers can assist you with any questions and provide both general and personal advice, as required.

Contact us on 0755045700 to make an appointment.

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