The ATO have recently alerted SMSF trustees to the fact that superannuation concessional and non-concessional contribution caps will be indexed (increasing) from 1 July 2021. The new caps will be:
|Year||Concessional Cap||Non-Concessional cap|
|2021-22||$27,500||$110,000 or $330,000 over 3 years|
Further to this, a member’s total superannuation balance limit will also increase from $1.6 to $1.7 million from 1 July 2021.
Note that where individual members are under 65 years old, they may be able to make use of the bring forward provisions, whereby up to 3 times the non-concessional contributions limit (i.e. 3 x $110,000 from 1 July 2021) can be contributed in a single year. However, if the member enters into the bring forward arrangement BEFORE 1 July 2021, they will NOT be able to make use of the additional cap space due to the increase to the non-concessional cap mentioned above.
If a member of your SMSF is planning on making additional contributions, consider talking to an SMSF advisor or tax professional to ensure you are adhering to all the contribution rules.