A superannuation specialist has forecast more increases to the general transfer balance cap over the coming two income years through further application of the indexation measure to the threshold.
“We still get questions [regarding our expectations about the superannuation caps] for 2025/26 and 2026/27. We’ll know in the preceding March, but from my numbers if you do a simple calculation [using a] 3 per cent CPI (consumer price index), [which is in] the upper range of the target, and 2.5 per cent AWOTE (average weekly ordinary time earnings), it’s probably going to be the case for the next two financial years that the general transfer balance cap gets indexed again to $2 million and then $2.1 million,” BT Financial Group technical consultant Matt Manning told attendees of a practitioner webinar held yesterday.
However, Manning noted superannuants should not expect the same type of result for the concessional contributions cap and in turn the non-concessional contributions cap.
“The standard concessional [contributions] cap [is likely] to stay the same for the next financial year and the one after as well. So this $27,500 to $30,000 is probably going to be the last occasion in some time the standard concessional [contributions] cap gets indexed,” he said.
“But the general transfer balance cap will continue to be indexed more regularly.”
While he predicted these developments to these retirement savings system thresholds in the coming years, he reminded his audience other thresholds associated with contributions will not be shifting as any indexation measure has not been legislated into their operation.
To this end, he pointed out the qualification threshold allowing individuals to take advantage of unused concessional contributions caps from previous income years will continue to be a total super balance of below $500,000.
Similarly, the work test exemption will still only be available for superannuants with a total super balance under $300,000.
