Increases to Superannuation Contribution Caps
AFA News 15 April 2021. From 1 July 2021, Australians will be able to put more into their Superannuation due to an indexation increase to the concessional and non-concessional contribution caps. The transfer balance cap is also set to increase on 1 July 2021 due to indexation. This is the first increase, since it was introduced in July 2017
|Current limit is capped at||New Limit from 1 July 2021|
These changes are an important reason to contact your clients and to review existing contribution strategies for the next financial year.
*Transfer Balance Cap is a limit on how much superannuation can be transferred into a tax-free retirement account. Click here for more information.
Keep in mind, the transfer balance cap is a lifetime limit on the total amount of superannuation that can be transferred into retirement phase income stream products.
From 1 July 2021, when the transfer balance cap is indexed to $1.7 million, every individual will have a personal transfer balance cap between $1.6 and $1.7 million, depending on whether they have previously transferred funds to a retirement account and their individual circumstances. Indexation will only apply to the unused portion of the Transfer Balance cap.
Click here for more information.
Issued 15.04.2021. AFA Policy & Education Update