Five Important SMSF and Super Changes

By Norman Howe | More Articles by Norman Howe

  1. SMSF member numbers increased to 6

Long-awaited legislation has passed increasing the maximum number of members in an SMSF to 6.  This is great news for families, small businesses and partnerships because they can now pool super savings into one SMSF.

One of the main benefits of having more members is the fixed cost to run the SMSF are spread over more people which lowers the cost for members.

This is because the fixed costs; like accounting, audit, ATO levy, platform fees and back office, are shared over more members and are not based on a percentage of member balances which are often charged by retail super funds.

If your SMSF is increasing from 2 members, here are a few tips:

  • In your SMSF only use a corporate Trustee, as all members must be directors, remembering all directors determine the SMSF investment strategy and advise ASIC of the new directors
  • Get advice if any new member has life insurance in their current super fund, to ensure new insurance is in place in the SMSF before they rollover their super benefit
  • Provide Binding Death Benefit Nominations for any new members – best to get estate planning advice on this if you can!
  • If business partners are joining together, don’t use any life insurance for Buy Sell Agreement purposes as the ATO doesn’t like this


  1. Employer Super Guarantee Levy (SG) contribution has increased to 10%

Employer SG contributions increased to 10% effective immediately. A note to remember is SG contributions are payable on salary, (including bonuses), but not overtime. For high income earners, the new maximum salary cap applicable for SG is $235,690.

For example: the new employer 10% SG obligation for an employee on a salary of $80,000, is $8,000.


  1. Maximum Super Tax-Deductible Contributions and Non-Concessional Caps increased

The Maximum Concessional Cap for super contributions increased to $27,500 a year, (up from $25,000).  Please note the Maximum Concessional Contributions Cap includes:

  • employer’s compulsory SG 10%
  • additional salary sacrifice contributions
  • personal super contributions you intend claiming as a tax deduction

Additionally, the Maximum Cap for Non-Concessional (non-deductible) Contributions has increased to $110,000 a year.


Where automatic salary sacrifice arrangements are in place, please check with your employer to ensure these arrangements continue to be appropriate under the new changes.


  1. If you are 65 or 66, you can now make a big ‘one-off’ contribution to your super

Under the legislation changes, if you are aged 65 or 66, you now can use the ‘Bring Forward Rule’, to contribute up to 3 times the annual Non-Concessional Contributions Cap to your super savings.

That’s right, with effect from 1 July, if you are aged 65 or 66 (during 21/22) you can put into your super up to $330,000 as a lump sum, or if you are a couple make that up to $660,000 if you both fall into this age group.

This is a clever strategy to use if you are currently planning to sell an asset such as property or have cash in the bank and are deciding how best to use this money to create wealth or an income stream.  Super is a very efficient way to invest and create wealth due to the low tax structure and deserves consideration if you are after tax-free income down the track.


Please get advice if you want to access the Bring Forward Rule so you can best use this opportunity.

Also, if your total super balance is already above $1.7m, you cannot make any Non-Concessional Contributions.

As a guide, you could consider using the Bring Forward Rule if your super balance is:

  • Under $1.48m up to $330,000 – 3 years of cap
  • Between $1.48m and $1.59m up to $220,000 – 2 years of cap
  • Between $1.59m and $1.7m, up to $110,000 – 1 year of cap


  1. Transfer Balance Cap – Pension balance increased

Transfer Balance Cap (TBC) has increased to $1.7m, up from $1.6m.

The TBC is the maximum amount of super savings that can be used to commence a “tax-free super pension,” meaning any investment earnings has a 0% tax rate.  You can have more than the TBC in your super savings, but any amount above the TBC is treated as normal super and investment earnings are taxed up to a maximum of 15%.

About Norman Howe

Norman Howe is the founder of Strat X Advisory and has been involved with wealth management for over 30 years. He primarily works with SMSF trustees, SME owners and family groups helping them achieve wealth-life goals. As a high-level adviser and strategist, Norman specialises in SMSF, business restructuring, Estate Planning and Wealth-Life planning.

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