- Concessional (before-tax) contribution limits
- Non-concessional (after-tax) contribution limits
- Government co-contribution
- Low Income Superannuation Tax Offset (LISTO)
- Spouse contributions
- Minimum pension limits
- Preservation age
- Income tax rates
- Tax on super components
- Maximum contribution base
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For the 2018/19 financial year, the concessional contribution cap is $25,000 a year.
Effective 1 July 2017, there is an annual $100,000 non-concessional contributions cap and a maximum $300, 000 bring-forward cap..
Depending on your total superannuation balance, if you’re aged under 65, you may be able to bring forward two years of contributions, giving you a total non-concessional cap of $300,000 for the three years.
The government co-contribution is an initiative to help individuals save for retirement. If you earn $51,813 or less and make after-tax contributions to your super, the government will pay up to 50 cents for every dollar you contribute, subject to a maximum of $500 per year. The amount they match will be added to your super account.The maximum super contribution payable, and the way it is calculated, depends on the financial year in which you make your eligible personal contribution.
|Year of entitlement||Maximum entitlement||Matching rate||Lower threshold||Higher threshold|
Additional eligibility requirements were added from 1 July 2017, which includes:
- having a Total Superannuation Balance of less than $1.6mn on 30 June of the year before the year the contributions are being made
- having not exceeded your non-concessional contributions cap in the relevant financial year.
From 1 July 2017, the Australian Government introduced a Low Income Superannuation Tax Offset (LISTO) to replace the Low Income Superannuation Contribution (LISC). LISTO will continue to support low income earners to accumulate super and make sure they don’t pay more tax on their super than on their take-home pay.
This means, if you earn $37,000 or less a year, you may be eligible to receive a LISTO contribution to your super. This contribution is equal to 15% of the total concessional (before-tax) super contributions you or your employer pays into your super account, for an income year, capped at $500.
For more information visit ato.gov.au
A spouse contribution is an after-tax contribution to a superannuation account held in your spouse's name. In other words you're investing money into your spouse's super account rather than your own.
You can make spouse contributions for your spouse at any time before their 65th birthday, regardless of whether or not they are working. Between age 65 and 70 your spouse has to have worked at least 40 hours in a period of 30 consecutive days in the relevant financial year to be able to receive your contributions. You can't make spouse contributions for a spouse aged 70 or over.
A spouse includes a de facto partner of the same or opposite sex. Both you and your spouse must also be Australian residents at the time the contributions are made.
As the contributor, you can get a tax rebate up to $540 per financial year. You get the full tax rebate if:
- you contribute at least $3,000 to your spouse's account; and
- their assessable income plus reportable fringe benefits plus reportable employer super contributions is less than $37,000 for the year.
If you contribute less than $3,000, the rebate will be equivalent to 18% of your contributions.
If your spouse's relevant income is higher than $37,000, the rebate reduces until it cuts out when your spouse's income reaches $40,000.
You can find more details about eligibility on the ATO website.
Minimum pension limits apply to account-based, allocated and market linked (term allocated) pensions.
|Age||Minimum pension payment limit|
|95 and over||14%|
|Date of birth||Preservation age|
|Before 1 July 1960||55|
|1 July 1960 to 30 June 1961||56|
|1 July 1961 to 30 June 1962||57|
|1 July 1962 to 30 June 1963||58|
|1 July 1963 to 30 June 1964||59|
|1 July 1964 and after||60|
Preservation age is not the same as pension age.
Marginal personal income tax rates for the 2018/19 financial year.
|Taxable Income||Tax on this income|
|$18,201 - $37,000||19c for each $1 over $18,200|
|$37,001 - $90,000||$3,572 plus 32.5c for each $1 over $37,000|
|$90,001 – $180,000||$20,797 plus 37c for each $1 over $90,000|
|$180,001 and over||$54,097 plus 45c for each $1 over $180,00|
The above rates do not include the Medicare levy of 2%.
Taxed elements of your lump sum benefit
|Contribution type||Components||Tax treatment|
||Taxable||Under preservation age
Taxed at 22%*
At or above preservation age
Tax free up to $195,000 and the balance taxed at 17%*
Age 60 and over Tax free
* Includes Medicare Levy of 2%.
Tax on contributions
|Type of contribution||Under contribution limit||Over contribution limit|
|Concessional||15%||Your individual marginal tax rate plus an interest charge*|
|High income earners with an income over $250,000 a year||30% (includes 15% standard contributions tax + 15% additional tax called Division 293 tax#)||Concessional contributions in excess of the cap will be taxed at your marginal rate and Division 293 tax does not apply.|
# The additional 15% tax will only apply to the contributions equal to the value of calculated income over $250,000. Note: There is a special method to calculate a person's income for this additional tax. For example your superannuation contributions are included in the calculation. Please refer to the ATO website for further details.
Tax on super earnings
Investment earnings in superannuation are taxed at a maximum rate of 15%. The effective tax rate on some earnings is lower because of further tax concessions or credits available to the Fund.
Investment earnings on pensions are tax free.
Tax on income streams
Super income streams are also known as pensions and annuities.
Superannuation benefits are made up of two components, taxable and tax-free. Please note, the tax free component is not included in the table below as no tax is payable on this component.
|Age of recipient||Tax on income stream taxable component|
|Age 60 or above||Tax free|
|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 for a disability super benefit.|
For information regarding tax on death benefits please visit the ATO website.
The maximum super contribution base is used to determine the maximum limit on any individual employee's earnings base for each quarter of any financial year. The maximum contribution base for Superannuation Guarantee (SG) purposes is $54,030 per quarter for the 2018/19 financial year.
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