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The latest update in the indexation changes for superannuation is the increase in the concessional and non-concessional contributions caps from 1 July 2021. This comes after the release of the Average Weekly Ordinary Times Earnings (AWOTE) figure for the December 2020 quarter.
This also means that the maximum bring-forward rule cap increases too, from $300,000 to $330,000. The actual amount of the bring-forward NCC will depend on your total superannuation balance at 30 June 2021.
Remind me, what is the bring-forward rule?
If you are under age 65 at any time in a financial year, you can bring forward up to two years’ worth of non-concessional contributions for that income year. This allows you to contribute a greater amount without exceeding your non-concessional cap.
The table below summarises the new non-concessional contributions caps that will come into effect from 1 July 2021.
|Total Super Balance at 30 June 2021||Standard NCC cap||Maximum NCC cap under the bring-forward rule|
|$1.7m or more||Nil||Nil|
|$1.59m or more but less than $1.7m||$110,000||Nil|
|$1.48m or more but less than $1.59m||$110,000||$220,000|
|Less than $1.48m||$110,000||$330,000|
These changes present planning issues if you are considering making a large non-concessional contribution, depending on whether you are at or near your total super balance, or whether you have already triggered the bring-forward rule.