June 29, 2021

Changes to Superannuation from 1 July 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.


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