Several superannuation changes come into effect from 1 July 2021:
1. The Superannuation Guarantee rate on employee earnings will increase to 10% of Ordinary Times Earnings (up from 9.5%). The rate is planned to increase by 0.5% each year until it reaches 12% in 2026.
Will your payroll software be ready for this change?
Reminder: Superannuation is due by 28th day of the month following the end of each quarter.
Paid superannuation late? What are the implications? – click here to read more
2. The Concessional Superannuation Contributions Cap (deductible contributions) is increasing to a maximum annual contribution of $27,500 (up from $25,000).
3. The Non-concessional Superannuation Contributions Cap (non-deductible contributions) is increasing to a maximum annual contribution of $110,000 (up from $100,000).
Tip: Subject to certain rules, there are methods of contributing more into superannuation each year as part of a financial strategy. Please contact your Cooper Reeves Adviser for more information.
