Superannuation General Transfer Balance Cap Increase
You may have seen headlines recently announcing the indexation of the superannuation general transfer balance cap from $1.6m to $1.7m (essentially the maximum you can have to fund a retirement income stream) from 1 July 2021.
Some of our clients who are already indulging in the joys of a retirement income from their super fund may have done a happy dance in anticipation, but unfortunately you can put those tap shoes away ……. the rule only applies to those starting a retirement income stream for the first time on or after 1 July 2021. There are a few very specific exceptions but in general, No Soup For You sorry.
Looking on the bright side for those yet to start a retirement income stream, there will be a little bit more room in the cap for you to grow your balance should you choose (either individually, or with the benefit of specific financial advice which considers your personal circumstances, which our little blurb above is not!)
At this stage there is no change to the concessional or non-concessional limits, with some prospect that they will lift from 1 July 2022……