Contribution Rules @ 24 February 2021
Much has been said about what has changed and what might change regarding contributions. Discussion around the impending transfer balance indexation has added to the confusion so that many are unsure as to what the contribution rules for this financial year actually are as of today.
Concessional and non-concessional standard limits remain at $25k and $100k respectively.
Personal contributions can be made, without satisfying the work test, up to the member’s 67th birthday. From age 67 the minimum work test of 40 hours in 30 consecutive days must be met. No further personal contributions can be made from age 75.
The 3 year non concessional contribution bring forward provision is not available after the year in which the member has turned 65. It is probable that this will change within the current financial year,
to no later than the member’s 67th birthday, but it has not been changed yet and there is no guarantee that it will.
It is possible that contribution limits will be raised for next financial year from 1 July 2021 though this is also not guaranteed. Relevantly, if you trigger the 3 year non-concessional bring forward rule before indexation your maximum limit for the the 3 years will be $300k. It will not be increased by subsequent indexation. Naturally, any non-concessional contributions will also need to be tested against the total super balance as at the previous 30th June.