Employers must pay Superannuation Guarantee contributions at the current rate of 9.5 per cent of an eligible worker's earnings into a super account. Under the transitional increases, the minimum contribution rate will rise to 10 per cent on 1 July 2021, and gradually increase up to 12 per cent by 1 July 2025.
Concessional contributions are contributions that are made into your super fund before tax, including through salary sacrifice arrangements, and are taxed at a rate of 15% in the superannuation fund. The annual concessional contribution cap will increase on 1 July 2021 from $25,000 to $27,500.
Non-concessional contributions are contributions that are made into your super fund after tax is paid. The annual non-concessional contribution cap will also increase on 1 July 2021 from $100,000 to $110,000.
The transfer balance cap is a limit on how much superannuation can be transferred into a tax-free retirement account, and this cap will also increase on 1 July 2021 from $1,600,000 to $1,700,000.