Hi everyone, the Australian Bureau of Statistics have indicated that superannuation contributions caps will be indexed from the 1st of July 2021.

This is in line with the increase in average weekly ordinary time earnings reported in the December 2020 quarter.

This means that the concessional contribution cap should rise by $2,500 per annum to $27,500 per annum in total, and the non concessional contribution cap should rise by $10,000 to $110,000 per annum.

In addition, the maximum amount a member who was under age 65 at the start of the year can contribute under non-concessional contribution cap bring forward rule is also set to increase from $300,000 to $330,000 from the 1st of July 2021.

The 1.6 million non-concessional cap threshold is changing due to the indexation of the general transfer balance cap on the 1st of July 2021 to 1.7 million.

For clients who have already triggered the bring forward rule, they won't be able to make extra concessional contributions due to the increased capital during the brief forward period.

Other superannuation thresholds for 2021-2022 year will be issued once the ATO publishes this and other relevant superannuation and tax thresholds increases for 2021-2022.

This is general advice on me and does not consider your personal circumstances. You should not act on this advice without speaking to TruWealth who can consider if it is right for you. Thank you.