Four important changes to your super in 2021

How will the superannuation reforms impact you?

Last year the Federal Government announced the Your Future, Your Super package which aimed to empower Australians to take control over their superannuation.

The package, which came into effect on 1 July, is expected to save Australians $17.9 billion over 10 years*.

Here are some of the changes that may impact you.

Multiple super accounts

About four million Australians have more than one superannuation account^, usually because they open a new account when they change jobs.

Having more than one account could mean you’re paying unnecessary fees and charges which could reduce your retirement income.

Your super account will now follow you from job to job. This will prevent you from unintentionally creating multiple accounts, help to reduce the fees you pay and potentially increase your super balance over the longer term.

Transparency and accountability

Super fund trustees now have a duty to act in the best financial interest of members.

This means they must provide members with information about how they manage and spend money before annual general meetings and be able to show their actions were in members’ best financial interest.

Underperforming funds put on notice

Choosing a well-performing super fund can significantly boost your retirement income.

Under the reforms, superannuation products will face an annual performance test and the results will be available on a government website.

Underperforming funds that fail two consecutive annual tests will be banned from accepting new members and not be able to re-open unless their performance improves.

The website makes it easier for you to compare super products and select a high performance fund.

Contribution limits increasing

From 1 July there is an increase to both concessional (before-tax) and nonconcessional (after-tax) superannuation contribution limits.

You can contribute towards your concessional contribution component by salary sacrificing through your employer or via a personal deductible contribution, which are both taxed at 15% on entry to your super fund.

Additional superannuation contributions can make a substantial difference to your balance at retirement and may assist with reducing your taxable income.

Up to June 30 2021

From 1 July 2021

Concessional contributions cap

Concessional contributions cap



Non-concessional contributions cap

Non-concessional contribution cap



Although non-concessional contributions don’t entitle you to a tax deduction, it could still be beneficial to make an after tax contribution to your superannuation if you receive an unexpected sum of money such as an inheritance. If you’re on a higher marginal tax rate, this option could see you save tax upon retirement.

To ensure your retirement plans are on track, now is a good time to see how your fund is performing and make changes if required. 

* Budget 2020-21 Your Future, Your Super 
^Australian Taxation Office: Super data: multiple accounts, lost and unclaimed super

The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice and does not take into account any person’s particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs. The information referenced from the ACCC is © Commonwealth of Australia.