Yes – Super is a very good place to create wealth being a low tax environment and

Yes – As you would expect the government has progressively made it harder to put large sums of money into super!

The good news is the annual concessional contribution (CC) and non-concessional contribution (NCC) caps will increase from 1 July 2021.

Why is this good, increasing your super balance will provide you with more opportunities:

  • To grow your retirement savings,
  • Enable you to reach your retirement lifestyle goals, maybe even sooner!

The following table summarises the caps in 2020/21 and from 1 July 2021:


CapCurrently – FY2021From 1 July 2021 – FY2022
Concessional (CC)$25,000$27,500
Non-concessional (NCC)$100,000$110,000
Up to $300,000Up to $330,000
  1. The CC cap is indexed in line with AWOTE and is increased in increments of $2,500 (rounded down).
  2. The NCC cap is four times the general CC cap.
  3. The Non-concessional bring-forward rule allows those under 65 years old to make up to three years’ worth of non-concessional (after-tax) contributions to their super in a single income year (but they use up i.e. ‘bring forward’ their next two years of caps into the current year.


A refresher:

Concessional contributions typically include:

  • employer contributions:
  • compulsory SG contributions
  • mandated employer contributions made under an award
  • additional voluntary contributions made by the employer
  • employee voluntary salary sacrifice contributions
  • insurance premiums paid by an employer where the policy is owned inside superannuation
  • personal contributions claimed as a tax deduction by a person, whether self-employed or an employee. The deduction cannot result in an income loss.

Non-concessional contributions are ‘after-tax’ contributions and include:

  • personal contributions for which a tax deduction is not claimed
  • spouse contributions
  • contributions in excess of the concessional cap.

It’s important to consider the impact of the contributions caps and their increases, this includes:

  • Implications of beaching the cap limit i.e. amount over the NCC cap are taxed at 47%.
  • The impact for individuals who are part-way through a two or three year bring-forward period.
  • Understanding the transfer balance cap limits


Contact VJC if you’re thinking about investing more into your super, we can:

  1. Update your Wealth/Financial plan.
  2. Create one for you.

General Advice warning: the information in this article is general in nature, it is not advice specific to your needs. If you want to act upon the information in this article then you should seek advice from a qualified professional. VJC WM accepts no liability to any party for acting from this information unless they have sought advice in a formal engagement with VJC WM for this purpose.