From 1 July 2021, the concessional contribution cap is set to increase from $25,000 p.a. to $27,500 p.a. allowing more funds to be added into your retirement savings.
In addition to the concessional cap limit increase, the non-concessional cap will increase from 1 July 2021 from $100,000 to $110,000.
This also means the maximum ‘bring forward’ contribution is also set to increase from $300,000 to $330,000 from 1 July 2021.
It is important to note that the proposal announced in the 2019 federal budget to extend access to the bring-forward rule to people under age 67 at the start of the first financial year is not yet law. Therefore, only those under age 65 at the beginning of the financial year will be eligible to trigger the bring-forward rule.