Super Contribution Caps Set To Increase From 1 July 2021

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, currently set at $25,000 will increase to $27,500 from 1 July 2021.

The non-concessional cap will also increase from $100,000 to $110,000 from 1 July 2021.

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

Therefore, only members who are aged under 65 at the beginning of the financial year will be eligible to trigger the bring-forward rule.

For clients who have already triggered the bring-forward rule, they won’t be able to make extra non-concessional contributions due to the increased cap until their bring-forward period expires.

The $1.6 million general transfer balance cap is also increasing to $1.7 million from 1 July 2021.

Should you need more information, please give us a call at the office (08) 8431 1644.

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