Superannuation changes on 1 July 2021
Starting 1 July 2021, there will be superannuation changes that will impact the amount you can contribute and how much you can have in your retirement phase superannuation account.
The current $1.6 million general transfer balance cap (TBC) will be indexed to $1.7 million. There will be no single cap applied to all individuals once indexed.
How the superannuation change will affect you
You will have a personal TBC of $1.7 million if you are starting your first pension on or after 1 July 2021.
Your personal TBC will be calculated proportionally if you had a personal TBC before the said date. This is based on the highest balance of your transfer balance account:
- $1.6 million if, at any time between 1 July 2017 and 30 June 2021, the balance of your account was $1.6 million or more; or,
- between $1.6 million and $1.7 million in all other cases, based on the highest ever balance of your transfer balance account
Other caps affected
- Total super balance (sum of your super and retirement phase accounts) threshold, also increasing from $1.6m to $1.7m
- non-concessional contribution rules and bring forward rule eligibility
- government co-contributions eligibility
- spouse contributions eligibility
- defined benefit income stream special value calculation (cap increases from $100,000 to $106,250)
Please visit the ATO website for more information about the transfer balance cap changes.