EOFY and super

EOFY and what's changing from 1 July 2021

Updated: 7 July 2021

With the end of financial year you could benefit from opportunities to build your super and benefit from tax breaks. From 1 July 2021 new caps apply for super and Super Pension accounts.

If you're responsible for paying your own super or are paying this to employees, you need to be across key dates for the financial year ending 30 June 2021 and new rates that apply from 1 July 2021. 

Super

  • Deadlines approaching this financial year

    Contributions

    If you're planning on claiming a tax deduction for this financial year for making a voluntary after-tax contribution (which includes any payment you make from your take-home pay), TWUSUPER needs to receive this payment by 25 June 2021 for your contribution to be counted for this financial year.

    Claiming a tax deduction

    If you earn under $54,837 in the 2020/21, the Government could add up to $500 to your super when you make a voluntary after-tax contribution to your TWUSUPER account (if you meet certain criteria).

    Government Co-contribution

    Withdrawals

    If you're planning on making a lump sum withdrawal from your super this financial year, we need to receive your withdrawal request by Wednesday 23 June.

  • New caps apply from 1 July 2021

    Some changes are coming to caps and thresholds from 1 July 2021. This includes increases to the amount your employer must pay you in super, and the amount you can voluntarily contribute to super. The key changes are:

    • concessional contributions cap – that applies to Super Guarantee (SG) and salary sacrifice contributions – increases to $27,500 (up from $25,000)
    • the non-concessional contributions cap – that applies to after tax contributions – increases to $110,000 (up from $100,000)
    • super guarantee (SG) payments from employers to employees increases from 9.5% to 10%.
    • the total super balance (TSB) increases to $1.7 million (up from $1.6 million). The TSB is the total amount you can have in the super system, and is used to determine your eligibility for several super-related measures in the following financial year (such as contribution caps and government co-contributions)
    • the general transfer balance cap – a lifetime limit on the total amount of super that can be transferred into retirement products – increases to $1.7 million (up from $1.6 million).
  • First Home Super Saver Scheme from 1 July 2021

    The Government will increase to $50,000 the maximum amount of voluntary contributions aspiring home buyers can take from the First Home Super Saver Scheme. This scheme allows people to make voluntary contributions to super, using lower tax rates in super to help build a deposit for a first home. These contributions are currently capped at $15,000 a year and $30,000 in total.

    Under the proposed changes, salary sacrifice contributions up to a maximum of $50,000 will be allowed into a super fund. For couples, both individuals will be able to use their caps for a maximum of $100,000.

    Note: Super Guarantee (SG) contributions cannot be withdrawn under the scheme.

  • Withdrawals for this financial year

    The deadline for withdrawal applications for the financial year is Wednesday 23 June. Any applications received after this date will be processed for the next financial year.  

Super Pension

  • Withdrawals for this financial year

    If you're planning on making a lump sum withdrawal from your Super Pension this financial year, we need to receive your withdrawal request by Wednesday 23 June.

  • Drawdown re-calculation from 1 July 2021

    If you receive a percentage-based payment (e.g. 10% of your Super Pension balance a year), we will re-calculate your new annual payment on 1 July. This means you may see a change to your payment amount.

    The temporarily reduced the minimum drawdown requirements for super pensions remain reduced by 50% 2021-22.*

    To see at a glance what the rates are, see our tables detailing the drawdown rates. If you have any queries about your Super Pension please call 1800 222 071 between 8am and 8pm (AEST/AEDT) weekdays.

  • AFTER next financial year: Changes in 2022

    Downsizer age reduction

    From 1 July 2022 people who downsize their family home will be able to contribute $300,000 to super ($600,000 for couples) at age 60. Currently, retirees have to be 65 or over to do this. This measure will help older Australians downsize to a home that better suits their needs while building their super balance. Importantly, downsizer contributions don’t count towards the contribution caps.

    Removal of Work Test for those aged 67-74

    The Government will remove the work test from 1 July 2022. This test requires those aged between 67 and 74 to be gainfully employed for at least 40 hours over 30 consecutive days during the financial year before they can make voluntary contributions to their super. This measure will help those in the 67-74 age range build their super without having to meet a work requirement.

Payroll

 

  • Deadlines for June 2021

    SuperStream payments must be received by Friday 25 June. If you're using a clearing house other than QuickSuper* to pay SG into TWUSUPER accounts, please submit payments by Tuesday 22 June so the payment can be received by Friday 25 June.

    If you're using the TWUSUPER QuickSuper* solution to pay to employees in other funds, these must be processed 10 business days before 30 June to ensure they are received by the other super funds by the end of the financial year.

    If you pay SG quarterly, your payments for the last quarter of the 2020/21 financial year are due by 28 July 2021.

    * The QuickSuper service is provided to you by Westpac Banking Corporation ABN 33 007 457 141 ("Westpac") AFSL 233714 at the request of TWU Nominees Pty Ltd, ABN 67 002 835 412, AFSL No 239163 as Trustee for TWUSUPER ABN 77 343 563 307 L0000246, Westpac terms and conditions apply to the QuickSuper service which you will be asked to accept. General advice on this website has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, consider its appropriateness. You should also consider Westpac's Product Disclosure Statement (PDS). The PDS is relevant when deciding whether to acquire or hold a product.

    The trustee is not responsible for and does not accept liability for the products and services of QuickSuper. You should use your own judgement before deciding to use QuickSuper.

    The QuickSuper service and other products offered on this website are intended for use in Australia only. The products and services offered on this website are not available to individuals located in the European Economic Area.

  • Changes from 1 July 2021 - SG and concessional caps

    Super Guarantee increase to 10%

    The Budget did not delay scheduled increases to the Super Guarantee (SG). From 1 July 2021 SG contributions increase from 9.5% to 10%, eventually reaching 12% on 1 July 2025.

    Concessional contributions caps

    Be aware that the concessional (before-tax) cap that applies to Super Guarantee (SG) and salary sacrifice contributions increases to $27,500 from 1 July 2021. 

  • Changes from 1 July 2022 - $450 threshold removal

    From 1 July 2022, the $450 monthly minimum income threshold for employees will cease to apply. From this time, eligible employees will need to be paid the super guarantee of 10 per cent. From this date, eligible employees will need to be paid the super guarantee of 10 per cent even if they earn under $450 a month.