Some good news for SMSF members is that concessional and non concessional contribution (NCC) caps will increase from 1 July 2021. Indexation will result in an increase in the concessional cap from $25,000 to $27,500 and the NCC will increase to $110,000 per year with the ability to bring forward $330,000 in one
year subject to eligibility. However, it is important to note that these changes are subject to both the age of the member and the total superannuation balance. The contribution age has been increased to 67 without requiring a “work test” and the indexation of the transfer balance cap from $1.6m to $1.7m from 1 July 2021. The following diagram summarises the age and threshold for NCC:
It is important that you seek advice prior to implementing your contribution strategy and importantly consider the timing of contributions, remember the contributions must clear the bank account before 30 June to be counted in the current year.
Disclaimer – The content has been prepared by Redwood Wealth Pty Ltd & Redwood Advisory Pty Ltd without taking account of the objectives, financial situation or needs of a particular individual and does not constitute financial product advice. This article should not be considered personal financial advice as it is intended to provide factual information only. Ivan Filipovic is an authorised representative of First Mutual (AFSL 423710). Redwood Wealth is a Corporate Authorised Representative of First Mutual (1244359)