From 1 July 2021, there are changes to contribution caps. That is, the maximum amounts you can contribute to your super without paying additional tax are changing:
The new concessional contribution cap will be changing from $25,000 to $27,500.
(Concessional contributions are contributions which are taxed at a concessional (or lower) tax rate. These would usually include your employer contributions and any salary sacrifice contributions you make)
The new non-concessional contribution cap will be changing from $100,000 to $110,000.
(Non-concessional contributions are contributions that don’t receive concessional (or lower) tax treatment. They are usually contributions that are made with post-tax money)
The maximum ‘bring forward’ amount also increases from $300,000 to $330,000. You can find out more about the bring forward rule in the ‘post-tax’ contribution section of our website.
On top of these changes…
Also from 1 July 2021, there are changes to:
- the Transfer Balance Cap (increasing on an individual basis to between $1.6 million and $1.7 million depending on your circumstances – see the ATO for details)
- the Total Super Balance (increasing to $1.7 million). This figure used to determine eligibility for several superannuation measures such as government co-contribution