Just before the Easter long weekend the Australian Tax Office confirmed an increase to superannuation contribution caps.
From 1 July 2021, the annual concessional contribution cap will increase from $25,000 to $27,500.
"Australians will be able to put more into their super as the concessional and non-concessional contribution caps and the general transfer balance cap are set to increase due to indexation for the first time since July 2017," minister for women's economic security, superannuation, financial services and the digital economy Jane Hume said.
Concessional contributions are made to super funds before tax and taxed at a rate of 15% inside super funds.
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The cap for non-concessional contributions, which are made to super funds after tax has been paid, will also increase from July.
From 1 July 2021, the non-concessional contribution cap will increase from $100,000 to $110,000.
The ATO has also increased the transfer balance cap, the limit on how much super can be transferred to a tax-free retirement account, from $1.6 million to $1.7 million.
No other contribution caps have been changed as a consequence.