Superannuation Changes 1 July 2021

Superannuation Guarantee

The superannuation guarantee rate will increase to 10% on 1 July 2021.  Payroll software should provide updates to ensure your payroll obligations reflect the new rate.  Further increases are scheduled for future years as detailed below with an eventual increase to 12%.

PeriodGeneral Super Guarantee (%)
1 July 2021 – 30 June 202210.00
1 July 2022 – 30 June 202310.50
1 July 2023 – 30 June 202411.00
1 July 2024 – 30 June 202511.50
1 July 2025 – 30 June 202612.00

https://www.ato.gov.au/rates/key-superannuation-rates-and-thresholds/?anchor=Superguaranteepercentage

Super Contribution Caps will increase from 1 July 2021

From 1 July 2021, the superannuation concessional and non-concessional contribution caps will be indexed. The new caps will be:

YearConcessional CapNon-Concessional Cap
2021-22$27,500$110,000 or $330,000 over 3 years

The total superannuation balance limit that determines if an individual has a non-concessional contributions cap of nil will also increase from $1.6 to $1.7 million, effective from 1 July 2021.

Individuals who are under 65 years old, may be able to make non-concessional contributions of up to three times the annual non-concessional contributions cap ($110,000 from 1 July 2021) in a single year. It is important to note that if an individual enters into a bring forward arrangement before 1 July 2021, they will not have access to any additional cap space as a result of the increase to the non-concessional cap.

If a member of your self-managed super fund (SMSF) is planning on making additional contributions, talk to any of the Directors at Douglas & Harrison.

https://www.ato.gov.au/super/sup/super-contribution-caps-will-increase-from-1-july-2021/

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