Super guarantee changes
On 1 July 2021, the superannuation guarantee rate will increase from 9.5% to 10%.
Those affected will need to ensure that payroll and accounting systems are updated to reflect this change.
The rate is scheduled to progressively increase to 12% by July 2025.
Concessional and non-concessional caps
From 1 July 2021, the superannuation concessional and non-concessional contribution caps will be indexed.
The caps for concessional and non-concessional contributions will both increase by 10% from 1 July 2021 (for the 2021/22 financial year onwards). The new caps will be:
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.
