The 1 July 2021 superannuation changes

Changes from 1 July 2021 will impact on how much money you can contribute to superannuation and how much you can have in your retirement phase superannuation account.

The amount you can contribute to super will increase

Indexation will increase the concessional and non-concessional contribution caps from 1 July 2021.  These caps are indexed by average weekly ordinary time earnings (AWOTE).  

Cap

Current cap

Cap from 1 July 2021

Concessional contributions cap

$25,000

$27,500

Non-concessional contributions cap

$100,000

$110,000

The bring forward rule

The bring forward rule enables you to contribute up to three years’ worth of non-concessional contributions in the one year.  That is, 1 July 2021, you could contribute up to $330,000 to your superannuation in one year.  You can use the bring forward rule if you are 64 or younger on 1 July of the relevant financial year of the contribution and the contribution will not increase your total super balance by more than your transfer balance account cap.

If you utilised the bring forward rule in previous years, your non-concessional cap will not change.  You will need to wait until your three years has expired before utilising the new cap limit.

1 July 2017 – 30 June 2021

After 1 July 2021

Total Super Balance (TSB)

Contribution and bring forward available Total Super Balance (TSB)

Contribution and bring forward available

Less than $1.4m

$300,000 Less than $1.48m $330,000

$1.4m -$1.5m

$200,000 $1.48m – $1.59m

$220,000

$1.5m – $1.6m

$100,000 $1.59m – $1.7m

$110,000

Above $1.6m Nil Above $1.7m

Nil