Four government changes to super that you need to know about


Some important changes to the rules on super came into effect during 2021.

1. More money going into super from your employer

In what will deliver a great boost to your retirement income, the amount your employer is required to pay into your super account (the Super Guarantee) has increased from 9.5% to 10%. This means from 1 July 2021 a minimum of 10% of your pay will be contributed to your super. Visit the Australian Taxation Office (ATO) website to find out if you are eligible to receive the Super Guarantee.

Update: The Super Guarantee subsequently increased to 10.5% from 1 July 2022 and is scheduled to continue to increase by 0.5% each year, until it reaches 12% in FY2025/2026.

Your Super Guarantee is designed to grow over time and help fund your retirement. But do you know how it’s calculated, how it’s taxed and when it’s due to be paid by your employer?  

Read our article: Super Guarantee contributions – the top things you need to know

2. Contribution caps have increased

For the first time since 2017 contribution caps have increased, meaning you may have an opportunity to contribute more money into your super. 

Contribution cap Before
1 July 2021
New caps
from 1 July 2021 
Concessional cap (annual) $25,000 $27,500
Non-concessional cap (annual) $100,000  $110,000
Maximum non-concessional (bring-forward) $300,000 $330,000*

* Assumes under age 67 at some time during year contribution made and that total superannuation balance was less than $1.48m at 30 June 2021.

It’s worth noting that the transfer balance cap also increased to $1.7 million. So, if your total super balance is $1.7 million or more (as at 30 June 2021) you won’t be able to make any non-concessional contributions this financial year.  

Paying a little extra into your super now may make a big impact in retirement. Use our calculator to see the value of what one less cup of coffee a day, or take-out meal a week, could mean for your retirement savings. 

Small change big savings calculator

3. Your super will follow you from job to job

You may have heard some talk about ‘stapling super’, but do you know what it means?

Stapling means your existing super account will move with you from job to job and comes into effect from 1 November 2021.  

If you stay with your current employer, this will mean no change to where your super is paid. However, if you move to a new employer, they will be required to pay your super into your existing super account (if you have one), unless you tell them to pay it into another super account. 

The purpose of this change is to reduce the number of people with multiple super accounts. 

If you are starting a new job and want to take your BT super with you we can help make this easy and remove the paperwork. Just complete a simple online form and we will send your employer all the information they need to make payments into your super account.

Online form: Ask your employer to pay super into your BT account

4. Annual performance testing 

The government has also introduced a new annual performance test for MySuper products. 

The first test will be based on seven-year performance to 30 June 2021 and any products which fail the test will have to notify members. A product that fails the performance test for two years running may be unable to accept new members.

It’s a good idea to understand your personal rate of return which you can see when you sign in to your super

It’s important to look at more than just investment performance when you are comparing super funds.

Read our article: What to look for when comparing MySuper funds

Related content

Knowing what you should have in your super at your age can help you determine if you’re on track towards being able to fund a comfortable retirement.
FY21 has seen a rebound of markets and a return to calmer conditions – with BT super members receiving some of the highest returns seen in years.
Most major investment markets rose over FY21, with several hitting record levels as economies returned to pre-COVID levels of growth – which is good news for BT super members.

Things you should know

This information is current as at 1 July 2022.

This information has been prepared without taking account of your personal objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This information provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such. 

Superannuation is a means of saving for retirement, which is, in part, compulsory. The government has placed restrictions on when you can access your investment held in superannuation. The Government has set caps on the amount of money that you can add to superannuation each year on both a concessional and non-concessional tax basis. There will be tax consequences if you breach these caps. For more detail, speak with a financial adviser or visit the ATO website.

The tax position described is a general statement and is for guidance only. It has not been prepared by a registered tax agent. It does not constitute tax advice and is based on current tax laws and our interpretation. Your individual situation may differ and you should seek independent professional tax advice. For more information, visit the ATO website. 

BT Funds Management Limited (BTFM) ABN 63 002 916 458, AFSL No. 233724, RSE No. L0001090 is the trustee and issuer of interests in BT Super for Life and BT Super which is are a part of Retirement Wrap ABN 39 827 542 991, RSE R1001327. A Product Disclosure Statement (PDS) for BT Super for Life and BT Super, and the BTFM  Financial Services Guide (FSG) can be obtained by calling 132 135, or from the Product Disclosure Statement page. You should obtain and consider the PDS before deciding whether to acquire, continue to hold or dispose of interests in BT Super for Life and/or BT Super.

An investment in BT Super for Life and/or BT Super is not an investment in, deposit with or any other liability of Westpac Banking Corporation ABN 33 007 457 141 (Westpac), St.George Bank, BankSA or Bank of Melbourne (which are Divisions of Westpac), or any other company in the Westpac Group. It is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. None of Westpac, any other company in the Westpac Group or any appointed investment manager stands behind or otherwise guarantees the capital value or investment performance of BT Super for Life or BT Super.

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