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Making sure you understand how upcoming changes may impact your super is important to us. See what changes to super balance limits, contribution caps and transfer balance caps may mean for you.
The total superannuation balance limit and caps on additional contributions made to your super will both increase from 1 July 2021.
Super funds receive preferential tax treatment, so there are limits on the amount of money you can contribute to your super fund each financial year before additional tax applies. These limits are called contribution caps.
Contributing too much to your super, or going over the cap, could mean extra tax, so it pays to understand how the contribution caps work.
The contribution caps will increase from 1 July 2021.
For before-tax (or concessional) contributions, the cap will increase from $25,000 to $27,500 from 1 July 2021.
For after-tax (non-concessional) contributions, the cap will increase from $100,000 to $110,000 from 1 July 2021.
Concessional contributions are made from before-tax income. They include:
Before-tax (concessional) contributions
The super fund pays tax on your employer contributions when they are received into your super account, or when you notify us of your intent to claim a tax deduction for personal contributions.
The cap on concessional contributions from 1 July 2021 will change to $27,500.
Non-concessional contributions are any contributions made to your super after income tax has been paid. They include:
The general cap on non-concessional contributions from 1 July will change to $110,000.
Your total super balance is a way to value your superannuation interests in all of your super funds. It is calculated on a given date, usually 30 June (the end of the financial year).
Your total super balance is used to determine whether you are eligible for several super-related measures in the following financial year, such as non-concessional contributions, the government co-contribution, and the spouse tax offset.
The total superannuation balance limit for some measures is increasing from $1.6 million to $1.7 million from 1 July 2021.
From 1 July 2021, if your total superannuation balance was $1.7 million or more at the prior 30 June your non-concessional contributions cap is nil.
The total super balance change will also impact the ‘bring-forward rule’ for non-concessional contributions.
If you are under age 65 at any time in a financial year, you may be able to contribute up to three times your non-concessional cap. This is known as the ‘bring-forward rule’ and means you are bringing forward the cap for up to the next two years.
Under the changes, from 1 July 2021:
Other measures affected by the increased limit are the spouse tax offset and the government co-contribution.
The transfer balance cap is a limit on the total amount of superannuation that can be transferred into tax-free retirement accounts, such as the Retirement Income account and Lifetime Pension.
From 1 July 2021, the general transfer balance cap will increase from $1.6 million to $1.7 million.
From 1 July 2021, each person will have their own personal transfer balance cap between $1.6 and $1.7 million, depending on their circumstances.
Professional financial advice on your QSuper account at no additional cost.1
1. You can find out more about financial advice options at qsuper.qld.gov.au/advice or by calling us on 1300 360 750. QInvest Limited (ABN 35 063 511 580, AFSL 238274) is a separate legal entity responsible for the financial services it provides. Eligibility conditions apply. Refer to the Financial Services Guide (pdf) for more information.
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