A number of changes to superannuation laws come into effect on 1 July 2021. Among them is the increase in general super guarantee, as well as the increase to concessional and non-concessional contribution caps.
From 1 July, the general super guarantee increases from 9.5% to 10%. It is then planned to increase by half a percent each year until it reaches 12% in 2025.
Individuals will also be able to put more into their super as the concessional and non-concessional contribution caps are set to increase due to indexation. Concessional contributions (those made into your super fund before tax then taxed at a rate of 15%) will increase from $25,000 to $27,500. The annual cap for non‑concessional contributions (transferred to your super fund after tax) are set to increase from $100,000 to $110,000.
The latest figures also show an indexed increase in the transfer balance cap from $1,600,000 to $1,700,000. The transfer balance cap is a limit on how much superannuation can be transferred into a tax‑free retirement account. This is the first increase in contribution caps since July 2017.
Other changes taking effect include measures to ensure super funds stay with workers when they change jobs and greater transparency obligations for super fund providers.