The ATO have announced that the Contribution Caps for Super are increasing from 1 July 2021. The new Contribution Caps will be:
- Concessional Cap of $27,500. (Up from $25,000)
- Non Concessional Cap of $110,000. (Up from $100,000)
The Concessional Cap is for super contributions where a tax deduction is claimed which includes employer contributions and personal contributions where you lodge a notice of intention to claim a tax deduction with your super fund and then claim a tax deduction in your Tax Return.
Concessional Super Contributions are possibly the best tax deduction available as you get to keep 85% of the contribution in super for your retirement.
From 1 July 2021, this provides you with more flexibility in tax planning and reducing your overall tax paid.