Super Guarantee Charge set to rise to 10% from 1 July 2021
Consider:
- How does this affect salary packages?
- Need to ensure our employer clients update their payroll details
- Likely result is any pay increases will fund the increased SGC so less of that increase will be in take home earnings
Concessional Super Cap rising to $27,500
- Catch up rule still in play from 1 July 2019 for those who have super under $500,000
Non-Concessional Super Cap rising to $110,000 (4 x concessional cap)
CGT cap amount rising to $1,615,000
Transfer Balance Cap rising to $1,700,000 (max allowed to be rolled in pension phase)
Maximum super contribution base rising to $58,920 – so maximum required to be paid as SGC rises to $23,568
Low rate cap for taxable super withdrawals rising to $225,000 – for people under 60
No change to Div 293 threshold – stays at $250,000
Super co-contributions – still $500 – income range $41,112 – $56,112
No change to pension draw down minimums other than removing the 50% reduction set as part of the COVID concessions.
Superannuation is one of those areas that can be compared to a cart on a rollercoaster. Its performance is constantly affected by economic climate and shifting legislation that alter the benefits individuals and businesses can gain from superannuation funds.
Please don’t hesitate to contact us if you would like to find out specifically how these changes to superannuation will affect you in the new financial year.