Changes to super 1 July 2021

10 June 2021

Gavel - BUSSQ Super

There are a number of changes impacting superannuation from July 2021.  To help you we’ve listed below the changes that could impact you.

Superannuation Guarantee increase 
The minimum super an employer must pay their employees, the Superannuation Guarantee (SG) is scheduled to increase from the current rate of 9.5% to 10% on 1 July 2021. Find out more about SG and employer contributions, or if you’re an employer learn more about your SG obligations

 

Concessional and non-concessional contributions cap increase

The Government set limits on how much you can contribute to your super per financial year without paying additional tax will increase on 1 July 2021 to the new caps below. More information on concessional and non-concessional contributions can be found on the ATO website or in this blog

Type of contribution  Contribution cap 1 July 2017 – 30 June 2021 (per financial year)  Contribution cap from 1 July 2021 (per financial year) 
Concessional (e.g. salary sacrifice contributions, employer contributions, tax deductible contributions) $25,000 $27,500
Non-concessional (e.g. contributions from money you have already paid tax on) $100,000 or $300,000 using the bring forward rule $110,000 or $330,000 using the bring forward rule

 

Reduced minimum Income account payment limits to continue
In 2020 the Government temporarily halved the minimum annual payment amounts for Income accounts as part of their COVID-19 economic support.  This temporary reduction has been extended to 30 June 2022 meaning Income account holders will have the option of choosing the below reduced minimum payment amounts for another year.

 

Age Reduced minimum payment rate
(% of account balance) 
 Under age 65  2%
 65 - 74 2.5%
 75 - 79  3%
 80 - 84 3.5%
 85 - 89 4.5%
 90 - 94 5.5%
95 and over 7% 

 

For more information on minimum payment amounts see our Income account PDS.

 

Transfer balance cap 
The transfer balance cap is the total amount that can be transferred from a Super account or a Transition to Retirement Income account, into an Income account.  This total will increase to $1.7 million from 1 July 2021 for those who start an income stream for the first time on or after that date.  More information on the transfer balance cap is available on the ATO website.

There are also a number of super benefit and cap amounts that change on an annual basis including:

Our team are here to help you with any super queries you have.  Please give us a call on 1800 622 877.

 

Prepared by BUSS (Queensland) Pty Ltd (ABN 15 065 081 281, AFSL 237860) as Trustee for BUSSQ (BUSSQ Fund, ABN 85 571 332 201). This information is general advice only and does not take into account or consider your personal objectives, financial situation or needs. Before acting, you should review the relevant Product Disclosure Statement to ensure you have all the information about the relevant BUSSQ product and how it works and consider the appropriateness of the information to your needs or seek independent advice from a properly qualified professional. 

 

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