The superannuation concessional and non-concessional contribution caps will be increased on 1 July 2021.
The new caps for voluntary contributions are:
Concessional Contributions cap: $27,500.00.
Non-concessional Contributions cap: $110,000.00. (or up to $330,000.00 as a bring forward arrangement – if you are eligible to bring forward).
However there are also additional rules or in some cases, potential benefits that may apply to you, if you meet the relevant criteria, including:
- If you superannuation balance was less than $500,000.00 on 30 June of the preceding financial year AND if you did not max out your concessional contributions previously, then you may be able to use your unused concessional cap amounts that you have accrued since 1 July 2018 (nb these unused amounts are only available for 5 financial years from when they accrued).
- You cannot make a non-concessional contribution if your total superannuation balance cap is exceeded. Currently that cap is $1.6 million, but from 1 July 2021, that cap will be increased to $1.7 million.
- Currently, if you are under 65 at the start of the year, then you may be able to participate in a bring forward arrangement and contribute up to $330,000 as a non-concessional contribution (which accounts for 3 years worth of your non-concessional cap). However it is proposed that this age limit be increased to 67;
- You cannot make voluntary contributions if you are 75 years or older (although a contribution may be able to be accepted in the 28 days following the
month you turn 75) and if you are aged from 67 to 74, then you may need to meet the work test in order to make a voluntary contribution;