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Changes to superannuation caps from 2021-22

The release of the November 2020 Average Weekly Earnings data means that finally there is some movement in a number of key superannuation thresholds, some of which last changed in 2016-17!!


There are a number of important flow on impacts for clients, particularly if considering making additional superannuation contributions. For example, if you are looking at making a large non-concessional contributions you will need to think carefully about whether you do that in 2020/21 or 2021/22.



CONTRIBUTIONS CAPS:


The concessional contributions cap is set to increase to $27,500 for the 2021-22 financial year (up from $25,000 since 2017-18).


The non-concessional contributions cap (which is set at 4 times the concessional cap) is $110,000 for 2021-22 (or $330,000 under the bring-forward rule over 3 years).


The CGT cap amount for non-concessional contributions is $1.615m for 2021-22 (up from $1.565m).


SUPER GUARANTEE: the "maximum contribution base" is $58,920 per quarter for 2021-22.


CO-CONTRIBUTIONS: "lower income threshold" is $41,112 for 2021-22; "higher income threshold" is $56,112.


SUPER BENEFITS: The following indexed thresholds apply for 2021-22:

  • Lump sum low rate cap - $225,000 (up from $215,000); untaxed plan cap - $1.615m (up from $1.565m)

  • ETP cap amount - $225,000 (up from $215,000)

  • Genuine redundancy and early retirement payments - tax-free amounts: base amount - $11,341 (up from $10,989); service amount - $5,672 (up from $5,496).

TOTAL SUPER BALANCE at 30 June 2021 is $1.7 million, up from $1.6 million


GENERAL TRANSFER BALANCE CAP is $1.7 million, up from $1.6 million


Get in touch if you want to know how these changes apply to you.

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