Essential Superannuation Update 2021-22
Superannuation and ETP thresholds
The superannuation and ETP (employment termination payment) thresholds for the 2021–22 financial year are listed below:
|Concessional contributions cap for individuals aged under 75*||$27,500**|
|Concessional contributions cap for individuals aged 75+||Only mandated employer contributions†|
|Non-concessional contributions cap*||$110,000|
|CGT cap amount||$1,615,000|
|Low rate cap amount/ETP cap amount||$225,000|
|Untaxed plan cap amount||$1,615,000|
|ETP life benefit cap amount||$225,000|
|ETP life benefit whole of income cap amount||$180,000|
|ETP death benefit cap amount||$225,000|
|Base limit — tax-free part of a bona fide redundancy payment||$11,341|
|For each completed year of service||$5,672|
|Co-contribution lower income threshold||$41,112|
|Co-contribution upper income threshold||$56,112|
* Work test needs to be satisfied if aged 67–74. The Government has announced that the work test will be repealed for salary sacrificed contributions and non-concessional contributions from 1 July 2022.
COVID-19 early release of superannuation
If you accessed your superannuation early in response to the COVID-19 pandemic, you can choose to re-contribute those amounts between 1 July 2021 and 30 June 2030 without them being counted towards your non-concessional contributions cap. The choice must be made in the approved form and given to your super fund before you make the re-contribution.
Superannuation that is accessed early is tax-free (non-assessable non-exempt (NANE) income).
Pensions and annuities – minimum drawdown amounts
The 50% reduction in the minimum drawdown amounts has been extended to the 2021–22 financial year. These are the minimum annual payments required for account-based pensions and annuities, allocated pensions and annuities and market-linked pensions and annuities.
If you receive more than the minimum drawdown amount, you can recontribute these amounts if you are eligible to make superannuation contributions (subject to other rules or limits such as contributions caps).
The maximum number of members for a self-managed superannuation fund (SMSF) increased from 4 to 6 from 1 July 2021.
Speak to our KMT licensed financial adviser before making any decisions affecting your superannuation.
SMSF – appointing an auditor
If you have a self-managed superannuation fund (SMSF), you need to appoint an approved SMSF auditor at least 45 days before the due date for lodging the 2020–21 SMSF annual return. The lodgment dates are:
- 31 October 2021 – new registrant SMSFs and SMSFs with one or more annual returns overdue on 30 June 2021 (unless they have been granted a deferral);
- 15 January 2022 – SMSFs that were taxable large or medium entities in 2020–21;
- 28 February 2022 – all other self-preparing SMSFs (unless the ATO has directed the SMSF to lodge on a different date).
- 16 May 2022 – all tax agents prepared SMSF’s
The role of an approved SMSF auditor is to review the SMSF’s financial statements and accounts, and to assess its compliance with superannuation laws.
The auditor must be registered with ASIC and independent of the SMSF. You can find a list of approved SMSF auditors on the ASIC website.
The ATO recommends that you start the process of appointing an auditor early as approved SMSF auditors can be busy (in March 2020, there were almost 590,000 SMSFs in Australia).
Contact our KMT registered tax agent to prepare your SMSF’s annual return as soon as possible!
The article is provided for general information purposes only and is not intended as professional advice. Readers should not act on the information contained therein without professional advice from a suitably qualified accountant.
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