from Andrew Harris principal of Minerds Bell Consultancy Group
Hi and welcome to my May bulletin.
April went by in a flash. Despite some Covid restrictions, I hope you were able to commemorate Anzac Day as you would have liked.
Coming up towards the end of the tax year, our planners and staff are gearing up for a busy time of year with clients so its “all hands-on deck” at 79 Belair Road.
As we come towards 30th June, I want to remind you about some recent changes to Super and let know about some changes that now been passed and are taking affect from the 1st of July.
Recent Super Changes
There is now no work test required to contribute to super up to age 67. This makes it easier to get more money into super before retirement age.
Changes to Super from 1t July 2021
Super Guarantee contributions will increase from 9.5% to 10% effective 1/07/2021. This increases the amount an employer needs to contribute on behalf of employees
Superannuation contribution caps have been increased. The concessional cap is increasing from the current $100,000 p.a. to $110,000 p.a. and the non-concessional cap from $25,000 to $27,500 p.a. These increased caps may influence your planned contributions from 1st July.
In addition to these changes, the pension cap is also set to increase from $1.6m to $1.7m.
In addition to these changes, don’t forget the Super “catch up rules” that apply if your super balance is less than $500,000. They allow you to “catch up” any unused concessional contributions from previous years where you may not have contributed up to the previous non-concessional cap, i.e. $25,000 p.a. This can be a good way to reduce personal tax.
If you want to know more about how you might take advantage of these changes, please contact Will, Daran, Nat or me.
The 2021/2022 Federal Budget is due to be handed down on Tuesday 11th May by Treasurer Josh Frydenberg. I’ll let you know in future bulletins about any changes that are announced that we believe may affect you.
That’s all I have for this month. Enjoy the latest articles.
Principal – Minerds Bell Consultancy Group