SUPER AND RETIREMENT
Rates and thresholds
Stay on top of the latest super rules
Each employer you work for must pay money, known as Superannuation Guarantee (SG) contributions, into your super account on top of your salary and wages. Generally, if you’re over 18 years, you’re entitled to receive super, regardless of whether you’re full-time, part-time or casual, or if you’re a temporary resident of Australia. Exception apply visit the ATO website for more information.
| Time period | SG rate |
|---|---|
| 1 July 2002 – 30 June 2013 | 9.00% |
| 1 July 2013 – 30 June 2014 | 9.25% |
| 1 July 2014 – 30 June 2021 | 9.50% |
| 1 July 2021 – 30 June 2022 | 10.00% |
| 1 July 2022 – 30 June 2023 | 10.50% |
| 1 July 2023 – 30 June 2024 | 11.00% |
| 1 July 2024 – 30 June 2025 | 11.50% |
| 1 July 2025 – 30 June 2026 and onwards | 12.00% |
It’s important to note that before 1 July 2022, you also had to be earning more than $450 a month (before-tax) to be eligible to receive SG contributions. However, in a move widely considered to make super fairer, a bill to remove this minimum monthly income threshold for compulsory SG contributions was passed in parliament. This means, from 1 July 2022, you will be eligible to receive compulsory employer SG payments, no matter how much you earn.
From 1 July 2024, the concessional contribution cap is $30,000 a year.
However, from 1 July 2018 if you do not use all of your concessional cap, you may be able to carry forward any unused amounts and increase your cap in future years (if you are eligible). Your MyGov account will show you the concessional cap available to you each year. For more information, please read our fact sheet on contribution limits.
If your total superannuation balance is lower than the general transfer balance cap (currently $1.9 million), an annual $120,000 non-concessional contributions cap will apply. If your balance is above $1.9 million, the cap is nil and as such any non-concessional contributions will be treated as ‘excess’ non-concessional contributions.
Depending on your total superannuation balance, if you’re aged under 75, you may be able to bring forward up to two years of contributions, giving you a total maximum non-concessional cap of $360,000 for the three years.
For more information please read our fact sheet on contribution limits.
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 $65,070 per quarter for the 2024-25 financial year.
The government co-contribution is an initiative to help individuals save for retirement. If you earn $60,400 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 |
|---|---|---|---|---|
| 2017-18 | $500 | 50% | $36,813 | $51,813 |
| 2018-19 | $500 | 50% | $37,697 | $52,697 |
| 2019-20 | $500 | 50% | $38,564 | $53,564 |
| 2020-21 | $500 | 50% | $39,837 | $54,837 |
| 2021-22 | $500 | 50% | $41,112 | $56,112 |
| 2022-23 | $500 | 50% | $42,016 | $57,016 |
| 2023-24 | $500 | 50% | $43,445 | $58,445 |
| 2024-25 | $500 | 50% | $45,400 | $60,400 |
Additional eligibility requirements were added from 1 July 2017, which includes:
- having a total superannuation balance less than the general transfer balance cap at the end of 30 June of the previous financial year
- 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 75th birthday, regardless of whether or not they are working. You can't make spouse contributions for a spouse aged 75 or over.
A spouse includes a de facto partner. Also, both you and your spouse must 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.
| 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.
Minimum pension limits apply to account-based, allocated and market linked (term allocated) pensions.
| AGE AT 1 JULY EACH YEAR | DEFAULT MINIMUM DRAWDOWN RATES |
|---|---|
| Preservation age to 64 | 4% |
| 65-74 | 5% |
| 75-79 | 6% |
| 80-84 | 7% |
| 85-89 | 9% |
| 90-94 | 11% |
| 95 and over | 14% |
If you have reached the eligible age, you may be able to contribute up to $300,000 from the proceeds of the sale (or part sale) of your home into your super. The eligible age from 1 January 2023 is 55 years old or older. There is no maximum age limit.
The downsizer contribution:
- counts towards the transfer balance cap when you move your super savings into retirement phase, but if you have already reached the $1.9 million transfer balance cap, your downsizer contribution, along with any other amounts above the cap, can remain in accumulation phase and will be subject to 15% tax on investment earnings.
- will impact Age Pension benefits. Super isn’t exempt from the Age Pension test, which means any money put into super, such as a downsizer contribution, could impact the assets and income tests aligned to the Age Pension.
- is a one-time offer, so it cannot be used again for the sale of a second home.
To learn more about downsizer contributions, check out the ATO website.
If you are under 75 years of age, you can make or receive after-tax super contributions and salary sacrificed contributions without meeting the work test, provided you remain under the current annual contribution caps and your balance is less than $1.9 million.
Here’s how it works:
- If you’re making contributions to your super, you can continue to make before-tax contributions up to $30,000 a year, minus any other before-tax contributions you receive, such as employer contributions. You may also have a higher before-tax limit, if you have ‘unused’ amounts from previous years.
- If your total super balance is less than $1.9 million, you can now make additional after-tax contributions up to $120,000 a year. You may also use the ‘bring forward’ rule to make after-tax contributions of up to $360,000.
That said, if you want to make an after-tax contribution for which you plan to claim a tax deduction (referred to as a ‘personal deductible contribution’), then you still have to meet the work test requirements to prove you are gainfully employed—that is 40 hours or more in any 30-day period in a financial year in which you make the contributions.
Taxed elements of your lump sum benefit
| Contribution type | Components | Tax treatment |
|---|---|---|
| Non-concessional (after tax) | Tax-free | 0% |
| Concessional (before tax) Includes personal contributions from after tax income for which you have claimed a tax deduction |
Taxable | Under preservation age Your marginal tax rate (including Medicare levy) or 22%1, whichever is lower At or above preservation age, less than 60 Tax free up to $235,000 and the balance taxed at 17%1 Age 60 and over 0% |
Tax on contributions
| Type of contribution | Under contribution limit | Over contribution limit |
|---|---|---|
| Non-concessional | 0% | 49%1 |
| Concessional | 15% | Your individual marginal tax rate1 plus you may have to pay extra tax |
| High income earners with an income over $250,000 a year | 30% (includes 15% standard contributions tax + 15% additional tax called Division 293 tax2) | Concessional contributions in excess of the cap will be taxed at your marginal rate and Division 293 tax does not apply. |
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, less than 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.
1 Includes Medicare Levy of 2%.
2 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.
Marginal personal income tax rates for the 2024-25 financial year.
| Taxable Income | Tax on this income |
|---|---|
| 0-$18,200 | Nil |
| $18,201 - $45,000 | 16c for each $1 over $18,200 |
| $45,001 - $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c for each dollar over $190,000 |
The above rates do not include the Medicare levy of 2%.
Can't find what you're looking for? Try the following websites:
Current tax rates: ato.gov.au
Superannuation industry issues: superannuation.asn.au
Social security entitlements: centrelink.gov.au
Financial tips and safety checks: moneysmart.gov.au