Changes to Superannuation 1 July 2021

The government has introduced changes to super funds and SMSFs to come into effect on 1 July 2021. Caps on  pre-retirement contributions are increasing, while governance is being overhauled to  promote transparency, minimise fees and eliminate poor performing funds. 

These changes are summarised below. If you would like more information please contact us directly.

Description From To  When?
Superannuation guarantee The compulsory contributions made by your employer is increasing 9.5 per cent 10 per cent (to reach 12 per cent by 2025) 1 July 2021
Concessional super contributions How much extra you can add to super before tax $25,500 a year $27,500 a year 1 July 2021
Non-concessional super contributions (NCCs) How much extra you can add to super after tax $100,000 a year $110,000 a year 1 July 2021
Bring-forward arrangement Bring forward up to three years of NCCs in one year $300,000 $330,000 1 July 2021
Total superannuation balance (TSB) The total balance of your super, after which you can no longer make non-concessional contributions $1.6 million $1.7 million 1 July 2021
Transfer balance cap (TBC) The amount which can be transferred from accumulation phase super to retirement phase pension $1.6 million $1.7 million 1 July 2021

If you have any questions or queries please contact the team at Bridge Private Wealth.

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