The concessional contribution cap increased on 1 July 2021 to be $27,500 up from the previous limit of $25,000. So, if you are considering super contributions before June 30 this year, remember the higher limit that now applies.
If your total superannuation balance was below $500,000 at the beginning of the financial year, you may have the ability to contribute more than the concessional contribution cap amount listed above. This involves utilising the catch-up concessional contribution option which utilises your unused contribution caps from prior years. This can be quite beneficial if you have a high taxable income, or a capital gain tax event occurred during the year, and you have available cash that could be contributed to super to help reduce the amount of tax you’ll need to pay.
The non-concessional contribution cap also increased at the beginning of this financial year and is now $110,000, which means under the bring-forward provision the limit is now $330,000.
As the financial year draws to a close, please remember that if you haven’t notified your super fund of your intention to claim a tax deduction for personal super contributions made during the 2020-2021 financial year, you will need to do so before 30 June 2022, or risk losing the deduction altogether – click here for a detailed explanation of the process.
When it comes to contributing to super you should seek our advice to make sure you understand eligibility, high-income earner tax rates and correctly validating contributions to receive your tax deduction.