Super Contribution Caps Scheduled to Increase
We will all be able to put more into our Superannuation due to an indexation increase that has been proposed for 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:
These proposed changes are an important reason for you to contact your financial adviser and to review existing contribution strategies for the next financial year. Please be aware that they are proposed and they may be subject to change.
*Transfer Balance Cap is a limit on how much superannuation can be transferred into a tax-free retirement account. Click here for more information.
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.
Stu Varidel and Your Choice Financial Planning Pty Ltd trading as Heart Financial Advisers are authorised representatives of Sentry Financial Services Pty Ltd AFSL 286786.
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