Significant Changes have been made to superannuation contributions from 1 July 2007. There are no limits on the amount of the deduction that can be claimed but there are limits on the amount of superannuation contributions that will be taxed at concessional rates. Personal superannuation contributions for which an income tax deduction is claimed are concessional contributions.
Concessional contributions include employer contributions (including contributions made under a salary sacrifice arrangement) and personal contributions claimed as a tax deduction by a self-employed person.
|
Income Year
|
Amount of Cap
|
|
2009 - 2010
|
$25,000
|
|
2010 - 2011
|
$25,000
|
| 2011 - 2012 |
$25,000 |
A transitional concessional contributions cap applies until 30 June 2012 for people aged 50 or over. Aged 50 or over the annual cap will be $50,000. If the taxpayer has more than one fund, all concessional contributions made to all funds are added together and count towards the cap.
In accordance with subsection 292-85(2) of the ITAA 1997, for the income years ended 30 June 2008 and 30 June 2009 the non-concessional cap is three times the concessional contributions cap.
From 1 July 2009, this will change to six times the concessional contributions cap.
People under 65 years of age may be able to make non-concessional contributions of up to three times their non-concessional contributions cap over a three-year period. This is known as the 'bring-forward' option.
The bring-forward cap is three times the non-concessional contributions cap of the first year. If you brought forward your contributions in 2007-08, it would be 3 x $150,000 = $450,000.
Non-concessional contributions include personal contributions for which you do not claim an income tax deduction.
|
Income Year
|
Amount of Cap
|
|
2009 - 2010
|
$150,000
|
|
2010 - 2011
|
$150,000
|
| 2011 - 2012 |
$150,000 |
There is a 'bring-forward' option available, meaning that people under 65 years of age can make non-concessional contributions of up to $450,000 over a three-year period.
Under the CGT cap, you can only exclude up to the CGT cap amount in non-concessional super contributions from the non-concessional contributions cap during your lifetime. The CGT cap applies to all excluded CGT contributions, whether they were made between 10 May 2006 and 30 June 2007 or after 30 June 2007.
|
Income Year
|
Amount
|
|
2009 - 2010
|
$1.1 million
|
|
2010 - 2011
|
$1.155 million
|
| 2011 - 2012 |
$1.205 million |
The application of the low rate threshold for superannuation lump sum payments is capped. The low rate cap amount is reduced by any amount previously applied to the low rate threshold.
|
Income Year
|
Amount
|
|
2009- 2010
|
$150,000
|
|
2010 - 2011
|
$160,000
|
| 2011 - 2012 |
$165,000 |
The untaxed plan cap amount limits the concessional tax treatment of benefits that have not been subject to contributions tax in a superannuation fund. The untaxed plan cap amount applies to each superannuation plan from which a person receives superannuation lump sum member benefits.
|
Income Year
|
Amount
|
|
2009 - 2010
|
$1.1 million
|
|
2010 - 2011
|
$1.155 million
|
| 2011 - 2012 |
$1.205 million |
A pension or annuity started on or after 1 July 2007, a minimum amount is required to be paid each year. There is no maximum amount other than the balance of the super account. The following table shows the minimum percentage factor for each age group:
The government has announced changes that, if passed by parliament, will reduce by 25% the minimum withdrawal for certain pensions and annuities for the 2011/12 year.
|
Age
|
Minimum % Withdrawal
|
|
Under 65
|
4.00%
|
|
65-74
|
5.00%
|
|
75-79
|
6.00%
|
|
80-84
|
7.00%
|
|
85-89
|
9.00%
|
|
90-94
|
11.00%
|
|
95 or more
|
14.00%
|
* The reduction in the minimum payment amounts for 2008/09, 2009/10 and 2010/11 years applies only to account-based annuities and pensions, allocated annuities and pensions, and market-linked annuities and pensions.
Generally, the preservation age must be reached before superannuation can be accessed . Use the following table to work out the preservation age.
|
Date of Birth
|
Preservation Age
|
|
Before 1 July 1960
|
55
|
|
1 July 1960 - 30 June 1961
|
56
|
|
1 July 1961 - 30 June 1962
|
57
|
|
1 July 1962 - 30 June 1963
|
58
|
|
1 July 1963 - 30 June 1964
|
59
|
|
From 1 July 1964
|
60
|
| Income Component Derived in the Income Year |
Age at Date Payment Received |
Amount Subject to Tax |
Maximum Rate of Tax (Including Medicare Levy) |
| Member benefit – taxable component – taxed element |
Under Preservation Age |
Whole amount |
21.50% |
| At or above preservation age and under 60 |
Amount up to the low rate cap amount |
Nil |
| Amount above the low rate cap amount |
16.50% |
| Aged 60 and above |
Whole amount |
Nil |
| Member benefit - taxable component - untaxed element |
Under Preservation Age |
Amount up to untaxed plan cap amount |
31.50% |
| Amount above untaxed plan cap amount |
46.50% |
| At or above preservation age and under 60 |
Amount up to the low rate cap amount |
16.50% |
| Amount above the low rate cap amount and up to the untaxed plan cap amount |
31.50% |
| Amount above untaxed plan cap amount |
46.50% |
| Aged 60 and above |
Amount up to the untaxed plan cap amount |
16.50% |
| Amount above the untaxed plan cap amount |
46.50% |
| Death benefit lump sum benefit paid to non-dependants - taxable component - taxed element |
Any |
Whole amount |
16.50% |
| Death benefit lump sum benefit paid to non-dependants - taxable component - untaxed element |
Any |
Whole amount |
31.50% |
| Death benefit lump sum benefit paid to dependants - taxable component - taxed and untaxed elements |
Any |
None |
Nil |
| Rollover superannuation benefits - taxable component - taxed element |
Any |
Whole amount |
Nil |
| Rollover superannuation benefits - taxable component - untaxed element |
Any |
Amount up to the untaxed plan cap amount |
Nil |
| Amount above the untaxed plan cap amount |
46.50% |
| Superannuation lump sum benefits less than $200 |
Any |
None |
Nil |
| Superannuation lump sum benefits (terminally ill recipient) |
Any |
None |
Nil |
Element taxed in the fund of a superannuation income stream
The table below summarises the taxation of a superannuation income stream paid with an element taxed in the fund.
The tax free component is not included. This component is not assessable income and not exempt income in all cases.
|
Age of Recipient
|
Income Stream
|
|
Age 60 and over
|
Not assessable, not exempt income
|
|
At or above preservation age and under 60
|
Taxed at marginal tax rates. Tax offset of 15% is available
|
|
Under preservation age
|
Taxed at marginal tax rates with no tax offset. Tax offset of 15% is available if a disability superannuation benefit
|
|
Medicare levy (1.5%) is added to whichever rate of tax applies
|
The table below summarises the taxation of a superannuation member income stream paid with an element untaxed in the fund.
The tax free component is not included. This component is not assessable income and not exempt income in all cases.
|
Age of Recipient
|
Income Stream
|
|
Age 60 and over
|
Taxed at marginal rates, with a 10% tax offset
|
|
At or above preservation age and under 60
|
Taxed at marginal rates, with no tax offset
|
|
Under preservation age
|
Taxed at marginal rates, with no tax offset
|
|
Medicare levy (1.5%) is added to whichever rate of tax applies
|
|
|
Employers
|
Self Employed
|
|
Age
|
2003/04
|
2004/05
|
2005/06
|
2006/2007
|
2003/04
|
2004/05
|
2005/06
|
2006/07
|
|
under 35
|
$13,233
|
$13,934
|
$14,603
|
$15,260
|
$15,977
|
$16,912
|
$17,804
|
$15,260
|
|
35 to 49
|
$36,754
|
$38,702
|
$40,560
|
$42,385
|
$47,339
|
$49,936
|
$52,413
|
$42,385
|
|
50 to 70+28 days
|
$91,149
|
$95,980
|
$100,587
|
$105,113
|
$119,865
|
$126,306
|
$132,449
|
$105,113
|
| From 1 July 2007, all contributions made to complying superannuation funds on behalf of employees are deductible. |
Limited to $5,000 + 75% of the contributions in excess of $5,000, up to the person's aged based limit.
|
|
Year
|
Rate
|
Max Quarterly Salary On Which SGC Is Calculated
|
| 2012 |
9% |
$43,820 |
|
2011
|
9%
|
$42,220
|
|
2010
|
9%
|
$40,170
|
|
2009
|
9%
|
$38,180
|
|
2008
|
9%
|
$36,470
|
|
2007
|
9%
|
$35,240
|
|
2006
|
9%
|
$33,720
|
|
2005
|
9%
|
$32,180
|
|
2004
|
9%
|
$30,560
|
|
2003
|
9%
|
$29,220
|
|
2002
|
8%
|
$27,510
|
|
2001
|
8%
|
$26,300
|
|
2000
|
7%
|
$25,240
|
|
1999
|
7%
|
$24,480
|
|
1998
|
6%
|
$23,630
|
| 2003/04 |
$0 to $27,500 |
100% up to $1,000 |
| $27,501 to $40,000 |
100% up to $1,000 less 8 cents / $ above $27,500 |
| 2004/05 |
$0 to $28,000 |
150% up to $1,000 |
| $28,001 to $58,000 |
150% up to $1,000 less 5 cents / $ above $28,000 |
| 2005/06 |
$0 to $28,000 |
150% up to $1,000 |
| $28,001 to $58,000 |
150% up to $1,000 less 5 cents / $ above $28,000 |
| 2006/2007 |
$0 to $28,001 |
150% up to $1,000 |
| $28,001 to $58,000 |
150% up to $1,000 less 5 cents / $ above $28,001 |
| 2007/2008 |
$0 to $28,980 |
150% up to $1,000 |
| $28,981 to $58,980 |
150% up to $1,000 less 5 cents / $ above $28,980 |
| 2008/2009 |
$0 to $30,342 |
150% up to $1,000 |
| $30,343 to $60,342 |
150% up to $1,000 less 5 cents / $ above $30,343 |
| 2009/2010 |
$0 to $31,920 |
100% up to $1,000 |
| $31,920 to $61,920 |
150% up to $1,000 less 5 cents / $ above $31,920 |
| 2010/2011 |
$0 to $31,920 |
100% up to $1,000 |
| $31,920 to $61,920 |
100% up to $1,000 less 3.333 cents / $ above $31,920 |
| 2011/2012 |
$0 to $31,920 |
100% up to $1,000 |
| $31,920 to $61,920 |
100% up to $1,000 less 3.333 cents / $ above $31,920 |
ATO - Key Rates and Thresholds
ATO - Contributions Cap
ATO - Superannuation Benefits
ATO - Super Co-contribution
ATO - Employment Termination Payments
ATO - Superannuation Guarantee
ATO - Other Superannuation Rates and Thresholds
ATO - Superannuation Co-contribution
|
