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  • More flexible superannuation

    The government announced changes to the cut-off age to access the bring-forward provisions for individuals making non-concessional contributions.

    Additionally, from 1 July 2021 individuals will be able to recontribute early release of superannuation payments without breaching the excess contribution cap and will no longer be subject to excess contributions charge.

    Bring-forward arrangement contributions cap

    The cut-off age for accessing the bring-forward non-concessional contributions cap will increase from 65 to 67 years.

    This means individuals aged 65 and 66 who were not previously able to access the bring forward non-concessional contributions cap due to their age may do so.

    Once the law commences this will apply to non-concessional contributions made on or after 1 July 2020.

    Remove the excess contributions charge

    Individuals who make contributions on or after 1 July 2021 that exceed their excess concessional contributions cap, will no longer be liable to pay the excess concessional contributions charge.

    They will still be issued with a determination and taxed at their marginal tax rate on any excess concessional contribution amount (with a 15% tax offset to account for the contributions tax already paid by their super fund).

    Re-contribution of COVID early release superannuation amounts

    Individuals who received a COVID-19 early release of super amount will be able to re-contribute up to the amount they received without the contributions counting towards their non-concessional cap. These contributions:

    • can be made between 1 July 2021 and 30 June 2030
    • cannot exceed the total amount of super accessed under the COVID -19 early release, and
    • cannot be claimed as a personal superannuation deduction.

    Individuals choosing to re-contribute must notify their super fund in the approved form, either before or at the time of making the re-contribution. We are currently working through the details of this process with super funds.

    We are aiming to have more detail on the process and the approved form available by 31 August 2021.

    Our web guidance will be progressively updated to reflect these changes.

    See also:

      Last modified: 06 Jul 2021QC 66010