Good News for those looking to get more into their Superannuation Fund
With the announcement of the Average Weekly Ordinary Time Earnings (AWOTE) figure for the December 2020 quarter, superannuation contribution caps are set to increase from 1 July 2021 for the first time in four years.
From 1 July 2021, the concessional contributions limit are to increase from $25,000 to $27,500. Meaning you can now contribute an additional amount of $2,500 into your superannuation fund from the 2022 financial year.
Concessional contributions are pre-tax super contributions and include an employer’s compulsory super contributions additional voluntary contributions – including salary-sacrifice – and personal contributions you may make for which you claim a tax deduction.
It is a worthwhile reminder that the government removed the ‘work test’ from July 2017, meaning a tax deduction for personal contributions you make is available to any.
In addition, the non-concessional contributions cap will increase from $100,000 to $110,000 and the general transfer balance cap it set to increase from $1.6M to $1.7M from 1 July 2021. The general transfer balance cap is the limit on the amount that you can transfer into a pension.
For more information, please contact the team at Eclipse Accounting on 02 9531 0922