Super Changes in a Nutshell

SMSF Accountant

Here is my “Super Changes in a Nutshell” – to get you up to date with all the super changes, super fast!

✔ From 1 July 2021 SMSFs will now be allowed to have up to 6 members.

✔ Bring forward arrangement contributions cap
The cut-off age for accessing the bring forward non-concessional contributions cap will increase from 65 to 67 years. This aligns with the “Work Test” now required at age 67. This means individuals aged 65 and 66 who were not previously able to access the bring forward non-concessional contributions cap due to their age may do so. I covered this in a previous post – this actually applied to non-concessional contributions made on or after 1 July 2020.

✔ Recontribution of COVID early release superannuation amounts
Individuals who received a COVID-19 early release of super amount will be able to re-contribute up to the amount they received without the contributions counting towards their non-concessional cap. These contributions:- can be made between 1 July 2021 and 30 June 2030- cannot exceed the total amount of super accessed under the COVID -19 early release, and- cannot be claimed as a personal superannuation deduction.

✔ Remove the excess contributions charge
From 1 July 2021 individuals who exceed their excess concessional contributions cap will no longer be liable to pay the excess contributions charge. They will still be issued with a determination and taxed at their marginal tax rate on any excess concessional contribution amount (with a 15% tax offset to account for the contributions tax already paid by their super fund).

✔ Transfer Balance Cap indexed to $1.7 million
The general transfer balance cap was $1.6 million. From 1 July 2021, it will be indexed to $1.7 million.
When the general transfer balance cap is indexed to $1.7 million, there won’t be a single cap that applies to all individuals. Every individual will have their own ‘personal transfer balance cap’ of between $1.6 and $1.7 million, depending on their circumstances. Sounds confusing? That’s because it is!

✔ Super Contribution Limits will increase from 1 July 2021
From 1 July 2021, the superannuation concessional and non-concessional contribution caps will be indexed. The new caps will be $27,500 for concessional contributions and $110,000 for non-concessional contributions or $330,000 using the 3 year bring forward rule.

✔ Superannuation Guarantee Charge increased
On 1 July 2021, the super guarantee rate will rise from 9.5% to 10%.

✔ Minimum pension amounts required to be withdrawn from an income stream remain halved for 2021/22.

This is general information only and does not take into account your personal objectives or circumstances. Always talk to a super expert like ourselves before acting on any of this information. We can provide personal advice.

Are you missing out on opportunities because your Accountant doesn’t keep you up to date with the latest superannuation changes? Thinking about changing Accountants? Did you know we just won an award for our personalised service? Call us today on 0401 217 901.

SMSF Accountant

Susan O’Connor

Susan O’Connor is an Accountant and SMSF expert with over 25 years of experience. Five years ago, she started her own successful accounting practice, specialising in SMSFs and all things super. She is passionate about teaching people about super and inspiring them to get invested in their own super. She has been awarded a Fellow of CPA’s, holds a B Bus and Diploma of Financial Planning, is a Registered Tax Agent, and holds an Australian Financial Services Licence to provide advice on SMSFs.

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