Superannuation and Age Pension changes from July 2021
Happy new (financial) year!
In this special edition we’ve updated all SuperGuide articles covering the key rules, regulations, rates and thresholds for the 2021-22 financial year. We also highlight the major changes that take place from 1 July 2021.
- SUPER RULES: The last few months have produced a flurry of legislation and rule changes due to kick off on July 1, with many new opportunities to boost your retirement savings. This includes increases in the Super Guarantee, transfer balance cap and annual contributions caps, an extension of the bring-forward measure to people aged 65 and 66 and a continuation of lower minimum pension drawdowns. Six-member SMSFs are finally a thing and last but not least, the phasing in of the Your Future, Your Super reforms.
- SUPER CONTRIBUTIONS GUIDES: Our guides to the newly-increased concessional and non-concessional contributions, plus co-contributions, SG, LISTO, Division 293 and MSCB have all been updated for 2021-22.
- AGE PENSION: The thresholds for the assets tests, income tests and deeming all increase on 1 July 2021, which means that more Australians can receive a full or a higher part Age Pension. The eligibility age for the Age Pension is also increasing by 6 months.
2021-22 SUPER CHANGES
Navigating your way around the constant rule changes in the super system is tricky, so here’s our annual list of the modifications you need to know about.
A new financial year brings updated thresholds for a range of super measures. Take a look at the new numbers to check for opportunities.
The TBC limits the amount you can transfer into a super pension. Find out how it works and how to take advantage of its pending increase.
Your total super balance determines whether you can use a range of valuable super measures. Learn how it works and what you could be eligible for.
After much haggling, the Government’s latest package of super reforms aimed at tackling high fees and low performance has passed through parliament.
2021-22 SUPER CONTRIBUTIONS GUIDES
Concessional contributions make up most of the money going into your super account, so it’s important to understand what these are and how they work.
Making a personal contribution into your super can be a great way to boost your retirement nest egg and enjoy the tax-effective benefits of the super system.
A free co-contribution payment made by the government into your super account can be a great way to boost your super account if you have some money to spare.
With Super Guarantee (SG) contribution rates changing again, it pays to understand the rules and the rate your employer is required to pay in 2022-23.
The Low Income Super Tax Offset is a government rebate that can help boost your super and make saving for retirement a little easier.
High-income earners face a quarterly cap on the amount of income on which their employer must make SG contributions. Here’s the limit for 2022-23.
High-income earners pay extra tax on their concessional super contributions, so it’s important to understand the rules.
AGE PENSION CHANGES
The age at which eligible retirees can start receiving the Age Pension has risen to 67. Bad news if you were born from 1957 on, but the good news is there are no plans to lift the age further.
This article details the rules and limits of the Age Pension assets test (how much your savings and other assets are worth), which is one half of the means test (along with the income test) that determines how much Age Pension you could be eligible for.
A common question for those nearing or in retirement is “How much can a pensioner earn before it affects the pension?”.
Under the deeming rules, you are ‘deemed’ to earn a certain annual rate of return on your financial assets, regardless of the rate of return you actually earn.
Our Age Pension calculator gives you an estimate of your potential Age Pension entitlements for the period 20 September 2023 to 19 March 2024.