Every year, a number of superannuation limits are adjusted.
This year is no different.
For most people, these changes won’t require any action. However, they do create a little more flexibility for those making additional contributions to super or preparing for retirement.
Here’s a quick summary of what’s changed.
Previous | New | |
Concessional Contribution Cap | $30,000 | $32,500 |
Non-Concessional Contribution Cap | $120,000 | $130,000 |
Bring Forward Contribution | $360,000 | $390,000 |
Transfer Balance Cap | $1.9m | $2.0m |
What does this mean?
For most people, probably not a lot.
The increase in contribution caps means there is now a little more room available for those looking to contribute additional money to super.
The bring-forward contribution limit has also increased, which may be helpful for those looking to contribute a larger amount following the sale of an asset, receipt of an inheritance, or as retirement approaches.
For those nearing retirement, the Transfer Balance Cap has increased to $2 million, providing a little more flexibility when commencing a retirement pension.
Final Thoughts
These changes are relatively modest and, for many people, won’t require any action.
If you’re already salary sacrificing to super, we’ll be in touch shortly with an updated contribution amount to provide to payroll so you can continue making the most of the increased cap across the financial year.
For everyone else, we’ll discuss any opportunities relevant to your situation at your next review.
As always, if you have any questions, please get in touch.
