It could also mean higher annual contribution limits and more opportunities for couples to equalise their super balances.
Super savers wanting to top up their nest egg with after-tax contributions could be the big winners from the opportunity to increase pension accounts by $200,000 from July 1 with the indexed increase in the transfer balance cap from $1.7 million to $1.9 million.
If the increase in the TBC to $1.9 million does proceed, there are also opportunities – and increased complexities – for wealthy savers coming up to retirement, those using the popular transition to retirement schemes and couples wanting to equalise super savings through contribution strategies. Those who have already started a retirement pension will get only some of the $200,000 increase in their limit – and possibly nothing.“There are dozens of possible balance cap amounts from July 1. Some will remain at $1.6 million, others will increase to $1.9 million and the remainder will fall somewhere in between,” says Crump.
The maximum amount that can be annually contributed into superannuation as an after-tax contribution – known as the non-concessional contribution cap – is $110,000. For those with a balance of between $1.68 million and $1.79 million, the maximum contribution will be $220,000.
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