With yesterday’s announcement of the AWOTE (Average Weekly Ordinary Time Earnings) figure for the December 2020 quarter, the super contributions caps are set to increase from 1 July 2021 as follows:
- Concessional cap increases from $25,000pa to $27,500pa
- Standard NCC (non-concessional contribution) cap increases from $100,000pa to $110,000pa
- Max NCC (non-concessional contribution) cap under bring forward rules increases to $330,000pa.
The change to the standard non-concessional cap and the previous increase to the transfer balance cap will also impact the non-concessional contribution cap bring forward period thresholds.
It is important to note that the proposal announced in the 2019 federal budget to extend access to the bring-forward rule to people under age 67 at the start of the first financial year is not yet law.
Therefore, only members who are aged under 65 at the beginning of the financial year will be eligible to trigger the bring-forward rule, according to Colonial First State.
Should you have any questions, please do not hesitate to give our team a call.
- The Average Weekly Ordinary Time Earnings (AWOTE) tell you what rate applies to an employee’s salary for super where there has been a salary reduction.