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.
|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.