Superannuation Rates and Thresholds for 2021 – 2022
The Australian Taxation Office (ATO) has released the key superannuation rates and thresholds for the 2021/22 financial year.
Concessional Contributions Cap – the cap will be $27,500 from 1 July 2021.
Concessional contributions are contributions that you or your employer make to your super with before-tax income or claim as a tax deduction. They are also referred to as employer or before-tax contributions.
Note that from 1 July 2018, if you do not use all of your concessional cap, you may be able to carry forward any unused amounts and increase your cap in future years (if you are eligible). Your MyGov account will show you the concessional cap available to you each year. For more information please read our Fact Sheet on Contribution Limits.
Non-Concessional Contributions Cap – the cap for 2021/22 will be $110,000.
Non-concessional contributions are contributions you or your spouse make to your super from your after-tax income. They are also referred to as personal or after-tax voluntary contributions. Anyone that has super worth over $1.7 million is not eligible to make non-concessional contributions to super.
Depending on your total superannuation balance, if you’re aged under 65, you may be able to bring forward up to two years of contributions, giving you a total maximum non-concessional cap of $330,000 for the three years.
Superannuation Guarantee (SG) – the SG rate rises to 10.00%, with the maximum super contribution base for 2021/22 increasing to $58,920 per quarter.
SG contributions are the compulsory contributions which most employees are eligible to receive, paid by their employer to super on their behalf.
Superannuation Co-Contribution – the maximum co-contribution entitlement for the 2021/22 year remains at $500. The lower income threshold (for full entitlement) increases to $41,112 and the higher income threshold (cut-off for eligibility) increases to $56,112.
The super co-contribution is designed to help lower income earners save for their retirement by providing a government top-up where an eligible person makes a personal contribution to super.
Capital Gains Tax (CGT) Cap Amount – the CGT cap amount for 2021/22 increases to $1,615,000.
The CGT cap is the lifetime super contribution limit for proceeds from the disposal of eligible small business assets.
Find out more about what you need to know about super as a small business owner.