7 Changes to Super that Could Affect You

12.07.21 Retirement By Josh Sweeney

This (financial) year, there are quite a few changes to the super rules and caps. Fortunately, many increase the opportunity to get more money into the tax-effective super environment. Here’s a quick run-down of the main changes that could potentially help you to save tax and make your money work harder:


1. Employer super contributions have increased to 10%

Employees will receive 10% employer super payments from 1 July 2021. This amount has increased from 9.5% and is set to increase further over the coming years – click here for more details on the increases.

2. The amounts you can contribute to super each year have increased

3. People up to age 67 can now use the ‘bring-forward’ rule

The bring-forward rule is when you ‘bring-forward’ two extra years of non-concessional contributions (mentioned above). This allows you to contribute up to $330,000 in one go. Previously, this was limited to people under age 65.

4. Those who withdrew super under the COVID-19 exemption can re-contribute it

If you withdrew money from super (up to $20,000) through the COVID-19 early release scheme, you can now re-contribute the same amount. You have until 30 June 2030 to do so.

5. Another year of halved minimum pension payments

The 2021-22 financial year sees an extension of halved minimum pension payment requirements (pensions payments from your super account – not the Centrelink Age Pension). These minimums (the minimum amount you must withdraw from a super-based income stream) are a percentage of your account balance on 01 July 2021 and are based on your age. Click here for more info and to see the relevant percentage for your age. 

6. You can now use $1.7M of your super to start a retirement income stream

From 01 July 2021 you can use up to $1.7M to start an income stream from your super – this has increased from $1.6M.

If you have already started an income stream however; the amount you can add to your income stream doesn’t increase by $100,00. The government’s ‘proportional indexation’ rules are complicated, so give the Cloudbreak Wealth team a call to discuss the increase if you think it applies to you.

7. Self-Managed Super Funds (SMSFs) can now have 6 members.

The maximum number of members that an SMSF can have has increase from 4 to 6 (from 01 July 2021).


They are the main changes to super that have come into effect recently. We assess all these changes and we’ll contact you if we think they present an opportunity to better your financial position. If you have any questions, please get in contact. The team at Cloudbreak Wealth are the best people to speak to, as we can provide guidance based on your situation.


General Advice Warning: Any advice given herein is general in nature and has not taken into consideration your personal financial objectives, situation or specific needs. As a result, you should consider the appropriateness of the advice as it relates to you before acting upon it. Where a specific product has been mentioned, you should always consult the Product Disclosure Statement (PDS) before making any investment decision relating to it.

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