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James56(Enthusiast)Enthusiast
27 Jan 2021

Yesterday the ATO announced the General Transfer Balance cap will increase to $1.7m from July 2021 (see Indexation of General Transfer Balance Cap). This is indexed to CPI.

The annual concessional contributions cap (currently $25k) is indexed to AWOTE and rises in increments of $25k (rounded down).

Current AWOTE for the June Quarter 2020 is $1713.90 (see Key Suparannuation rates and thresholds/AWOTE).

Q. Is any rise in the annual concessional cap in 2021/22 dependent on the AWOTE figure for the December quarter in 2020?

Q. If so, what AWOTE figure is required for the December quarter 2020 to trigger a rise in July 2021 to the annual concessional cap?

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1,287 views
5 replies

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Glenn4802(Devotee)Devotee
28 Jan 2021

Concessional contributions cap rises will be in increments of $2,500 (rather than $25,000).

A potential rise in the 2021/22 year is dependent on the AWOTE figure for the December 2020 quarter. If this amount is $1,686 or higher the concessional and non-concessional caps will increase for 2021/22. As you have mentioned the June quarter amount is higher than $1,686, so unless the AWOTE amount falls by more than $27.90 the caps will increase.

The AWOTE figure is due to be announced on February 25th.

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Most helpful reply

Glenn4802(Devotee)Devotee
28 Jan 2021

Concessional contributions cap rises will be in increments of $2,500 (rather than $25,000).

A potential rise in the 2021/22 year is dependent on the AWOTE figure for the December 2020 quarter. If this amount is $1,686 or higher the concessional and non-concessional caps will increase for 2021/22. As you have mentioned the June quarter amount is higher than $1,686, so unless the AWOTE amount falls by more than $27.90 the caps will increase.

The AWOTE figure is due to be announced on February 25th.

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