Changes to superannuation will be taking effect on 1 July 2021.
We have outlined the key changes and information for you.
From 1 July 2020, eligibility to use the bring forward rule has been extended to individuals who are 66 or younger (up from 64) on 1 July. The bring forward rule enables eligible individuals to use up to three years of non-concessional contributions cap in a single financial year. An individual’s eligibility to make these contributions may also be limited by their superannuation balance on 30 June of the financial year prior to making the contribution.
This will remove the excess concessional contribution charge that applies to any additional tax liabilities that arise from members exceeding their concessional contributions in a year.
Those that made early superannuation withdrawals under the former Covid-19 early release rule can re-contribute these amounts without it being added to their non-concessional cap. The total amount of the re-contributions must not exceed the Covid-19 early release amount, must be made between 1 July 2021 and 30 June 2030 and cannot be used to claim a personal tax deduction.
From 1 July 2021, the maximum number of members in SMSFs and Small APRA funds will be increased from 4 to 6.
If you would like to discuss this further or would like more information, please contact your local Boyce representative.
