June 29, 2021

Market Update - October 2021

Last week the highly anticipated legislation to increase super contributions caps and age limits from FY2020/21 was passed by the Senate:

  • Concessional contributions caps have been raised from $25,000p.a. to $27,500p.a. from 1 July 2021. Instead of waiting until June 2022 to make your contribution, why not consider making monthly contributions?
  • From 1 July 2021, excess concessional contribution charges will be removed, potentially saving between 15% and 94% tax if you have previously exceeded this cap.
  • People under the age of 67 on the 1 July 2021 (previously 66) will now be able to access the ‘bring-forward’ rule, rolling three years’ worth of personal contributions into one.
  • From 1 July 2021, anyone who applied for one or both of the COVID-19 early super release payments can re-contribute this withdrawal back into their super fund.
  • The number of members in a Self Managed Super Fund will increase from 4 to 6 members, potentially paving the way for a greater transfer of inter-generational wealth.
  • The temporary reductions in age-based minimum pension drawdowns introduced in FY2020/21 in response to COVID-19 have been extended into FY2021/22.

Please speak to one of our Advisers if you would like a personal analysis on how any of these changes could apply to your situation.

Recent
articles

Get in touch

Answers to all your questions,
even the ones you didn’t know to ask