As one of the three key pillars of Australia’s retirement income system, super is constantly evolving to ensure it meets the needs of both retirees, and working Australians saving for their retirement.
With that in mind, there are a couple of important changes coming to super on 1 July that you should be aware of.
The transfer balance cap, or the amount of money that you can transfer into the retirement phase of super, will increase on 1 July.
First introduced in the 2017-18 financial year, the general transfer balance cap is increasing from $1.6 million to $1.7 million thanks to indexation.
However, it’s important to note that different caps will apply to different people.
As explained by the ATO, every individual will have their own personal transfer balance cap of between $1.6 and $1.7 million, depending on their circumstances.
If you start a retirement income stream for the first time on or after 1 July 2021, you will have a personal transfer balance cap of $1.7 million.
If you had a transfer balance account before 1 July 2021 – that is, if you ever moved money into the retirement phase of super – your personal transfer balance cap will be:
You will be able to view your transfer balance cap information via your ATO or MyGov account online.
With super in the news, cyber criminals are carrying out phishing attacks and scams using a variety of different channels, such as email, phone or in person.
The government has put together a guide to help you spot a scam:
If you need help with making a decision about your super, you can get simple advice over the phone or face-to-face. It’s included as a part of your membership so there’s no extra cost.
