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Updates to super rates and thresholds from 1 July 2021

Several rates and thresholds relating to super will be changing from 1 July 2021. The main changes are explained below.

Contribution Caps to increase from 1 July 2021

From 1 July 2021 the below superannuation contribution caps will increase which will allow Australians to put more into super.

Concessional contributions are contributions made into super from before-tax monies. The annual concessional contributions cap will increase from $25,000 to $27,500.

Non-concessional contributions are contributions made into super from after-tax monies. The annual non-concessional contributions cap will increase from $100,000 to $110,000.

This also means the bring forward rule applicable to members who were under 65 at the start of the financial year will increase from $300,000 to $330,000 from 1 July 2021.

The general transfer balance cap will increase from $1.6m to $1.7m from 1 July 2021. This cap is a limit on how much super can be transferred to a tax-free retirement pension.

Superannuation Guarantee to increase from 1 July 2021

From 1 July 2021, the SG amount your employer pays into your super will increase from 9.5% to 10% of your salary. This is part of a staged approach to increase the SG amount to 12% in the coming years to help boost your retirement savings.

Temporary reduction to minimum pension payment amounts to continue until 30 June 2022

In response to the COVID-19 crisis and to ease the financial pressure on Australians funding their retirement, the Government temporarily reduced the annual minimum drawdown requirements for account-based pensions by 50% for 2019/20 and 2020/21. This temporary reduction will continue to apply in 2021/22.

 

Australian Ethical acknowledges the Traditional Owners of the country on which we work, the Gadigal people of the Eora Nation, and recognise and celebrate their continuing connection to land, waters and culture. We pay our respects to Elders past, present and emerging and thank them for protecting Country since time immemorial.