We summarise the key changes to super that you need to know.

Changes to super from 1 July 2021

  • The superannuation guarantee (SG) increased from 9.5% to 10% and is scheduled to increase 0.5% each year until it reaches 12%.
  • The annual cap for before-tax (concessional) contributions increased from $25,000 to $27,500. If eligible, you may be able to carry forward and use any unused cap amounts up to five years. This cap includes the 10% SG from your employer.
  • The cap on after-tax (non-concessional) contributions is now $110,000 (across all your super funds) per year if you have a total super balance of less than $1.7 million as at 30 June of the previous financial year. If you’re under 67 on 1 July, you can bring forward up to two years of future contributions, which is equivalent to a cap of up to $330,000 over three years. The full three-year bring forward cap only applies if your total super balance was less than $1.48 million.
  • The general transfer balance cap (TBC) is a lifetime limit on the total amount of superannuation that can be transferred into retirement phase income streams. Previously the TBC was set at $1.6 million. If you’re starting a new pension on or after 1 July 2021, you’ll have a personal TBC of $1.7 million. Everyone has their own personal TBC, to find out what cap applies to you visit the ATO website
  • The temporary 50% reduction to minimum pension payments has been extended to 30 June 2022 for members with any of the following accounts: VicSuper Flexible Income, VicSuper Flexible Income with TTR feature and VicSuper Term Allocated Pension.
  • The work test threshold has been raised from age 65 to 67. This means from 1 July 2020, if you’re under 67, you can make after-tax contributions without having to meet the work test.


Federal Budget 2021

The Government proposed a number of changes to superannuation in this year’s Federal Budget, including:

  • Removal of the $450 super threshold
  • Measures to help first home buyers save more for their first home
  • Lowering the age of eligibility for downsizer contributions.

The Your Future, Your Super measures to reduce multiple fees and address underperforming super funds were legislated in June this year.

Visit VicSuper budget for more information.


Important insurance update

Effective 1 February 2021, we have made improvements to the total and permanent disablement (TPD) definition. For more information, please read the Significant Event Notice included on your statement.


Improvement to the definition for total and permanent disablement

Total and permanent disablement (TPD) insurance cover is designed to help you financially if you become totally and permanently disabled and, due to your medical condition, are unlikely to perform similar work again.

The following change to the TPD definition came into effect from 1 February 2021:

There are three parts to the TPD definition

  • What's changed

    There are three parts to the TPD definition

    • Part 1 - Unlikely to do a suited occupation ever again
    • Part 2 - Specific loss (loss of limbs and/or sight)
    • Part 3 - Future care (unable to look after yourself ever again)

    if you hold total and permanent disablement cover and you're under 65, you can now be eligible for Part 1 of the TPD definition providing you are employed, self-employed or have been unemployed for less than 24 months, with a date of disablement on or after 1 February 2021 irrespective of the number of hours worked prior to the date of disablement.


  • What this means
    We're applying a less restrictive definition of TPD which is based on your suited occupation rather than your inability to undertake certain activities or daily living such as bathing, dressing and eating
  • What this means for making a claim

    You still need to satisfy at least one of the TPD definition parts outlined in our Insurance Handbook to be eligible to make a claim. Depending on the circumstances of your claim, a waiting period may also apply.

    Our Insurance Handbook provides more details about TPD cover and the applicable terms and conditions of our policy. Find out more about our Insurance Handbook

VicSuper investment fees – FY2020-21

Investment fees may vary from year to year and cannot be precisely calculated in advance. In some cases investment fees may go up compared to a previous year. An increase in investment fees may be the result of a number of factors, examples of which include an increase in the underlying managers’ performance fees, or a change in the way your investments were managed throughout the year. The Investment fees for the 2020-21 financial year are currently being calculated and will be updated on our VicSuper website and Product Disclosure Statements in November 2021. Please check the website for our latest investment fees.


Update to your investment options

As part of our investment approach, we undertake a yearly review of our investment options to make sure they are appropriate for market conditions and outlook. As part of our review this year there are some changes to the investment objectives and asset allocations of your investment options. These will come into effect on 30 September 2021 and affect the following products:

  • FutureSaver
  • Flexible Income with and without Transition to Retirement feature (TTR)


Investment Objectives

Every investment option has an investment objective, which is the desired investment outcome for the option, reflecting the current investment environment and investment mix.

The investment objective below will change on 30 September 2021. There are no objective changes to our other investment options.



Current Objective Objective from 30 September 2021
To outperform the returns of the Bloomberg AusBond Bank Bill Index, over rolling 12-month periods, before taking into account fees, costs and tax. To meet or exceed the return of the Bloomberg AusBond Bank Bill Index, over rolling 12-month periods, before taking into account fees, costs and tax.


Asset allocations – Future Saver and Flexible Income (with and without TTR)

Equity Growth option

There are no other changes to the investment option growth and income target asset allocations.

From 30 September 2021

Target Range Target Range
Growth 92% 72% - 100% 88% 68% -100%
Income 8% 0% - 28% 12% 0% - 32%


Strategic Asset Allocations (SAA)

Our members’ first investment approach aims to help you save more to enjoy in retirement. We have made some changes to the FutureSaver Balanced, Capital Stable and Capital Secure investment options to help you meet your goals. These options will now have a growth focus in all of the underlying asset classes to help you build the most in your super savings during your accumulation years. Equity Growth and Growth already have a growth focus in all of their underlying asset classes.


Diversified Options

diversified options


diversified options flexible income


Single Asset Class options – Future Saver and Flexible Income (with and without TTR) from 30 September 2021

Australian Shares
  Current From September 2021

SAA Range SAA Range
Australian Equities 100% n/a 100% 95% -100%
Cash n/a n/a 0% 0% - 5%


Got any questions?

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