Super News - Four key changes that may impact your SMSF in FY22

With the new financial year upon us, it’s important to consider four key changes to Superannuation Rules introduced from 1 July 2021. A summary of the important changes is outlined below, so you can plan for the year ahead.

1.  An increase to contribution caps

From 1 July 2021 onwards, you may be able to boost your superannuation savings as the contribution caps have increased as follows:

  • Concessional (pre-tax contributions) are capped at $27,500
  • Non-concessional (after-tax contributions) are capped at $110,000.

2.  Changes to age restrictions for bring-forward non-concessional contributions

The bring-forward cap for non-concessional contributions has been extended to those under the age of 67. This cap is three times the non-concessional contribution cap and allows contributions up to $330,000.

The amount of the non-concessional contributions you can bring forward has been summarised in the table below.

Total Superannuation Balance on 30 June for previous year
Non-concessional  contributions cap for the first year
Bring-forward period

Less than $1.48 million


3 years

$1.48 million to less than $1.59 million


2 years

$1.59 million to less than $1.7 million


No bring-forward period available, general non-concessional cap applies

$1.7 million or more


Not Applicable

Your BDO adviser can assist in determining the nature and amount of superannuation contributions and how this might impact your retirement savings.

Individuals aged between 67 and 74 will not be eligible to use the bring-forward rules. However, they will still be able to make non-concessional contributions of $110,000 annually if they meet the work test (i.e., work at least 40 hours over a 30-day consecutive period).

3.  An increase to the Super Guarantee rate

Effective 1 July 2021, the Superannuation Guarantee rate increased from 9.5% to 10%. Both employers and employees will need to consider the impact of the increase on salary packages and the effect on relevant employee awards.

Employers need to be aware that salary sacrifice arrangements cannot be used to account for the extra 0.5%.

Employees will need to check their current arrangements to ensure their concessional contributions caps will not be exceeded.

Exceeding your concessional contributions cap may lead to excess tax, and the excess concessional contributions will be included in your assessable income and taxed at your marginal tax rate.

4.  An increase to six members for SMSF funds

Legislation has passed to increase the memberships of Self-Managed Superannuation Funds (SMSF) from four to six members.

Some issues or factors to consider include:

  • Whether the fund’s trust deed allows for six members
  • The structure of the fund (i.e. whether it’s individual trustees or a corporate trustee)
  • Whether administration costs could be reduced if consolidating two SMSFs into one
  • Whether decision-making with regards to the operation and investments could be streamlined or become problematic.
  • Whether the decision to add additional members is fair and reasonable and in the best interest of all members.

Do you Need Help?

Superannuation is a complex area, and implementing the right actions and strategies is vital to ensuring your superannuation savings are maximised. Please don’t hesitate to contact your local adviser to seek assistance and ensure your savings are working for you.


Before making any investment or financial decisions you should consider, with or without the assistance of a professional adviser, your particular objectives, and financial circumstance or needs.
The information contained in this article is purely factual in nature, it does not take into account your personal objectives, financial situation or needs. The information is objectively ascertainable and, therefore, does not constitute financial product advice and should not be relied upon as financial product advice. 

If you require personal advice that takes into account of your particular objective, financial situation or needs, you should consult your BDO adviser who will be able to assist you in their capacity as Australian Financial Services licensee.