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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.

The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any information without considering your personal needs, circumstances and objectives. We recommend you obtain professional financial advice specific to your circumstances. The views expressed here are not ours. While the information contained in this article may contain or be based on information obtained from sources believed to be reliable, it may not have been independently verified. Where information contained in this publication contains material provided directly by third parties it is given in good faith and has been derived from sources believed to be accurate at its issue date. To the maximum extent permitted by law: no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up to date or fit for any purpose; and no party or associated entities as mentioned is in any way liable to you (including for negligence) in respect of any reliance upon such information. This article may also contain links to websites operated by third parties who are not related to us. These links are provided for convenience only and do not represent any endorsement or approval by us.

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