Superannuation Rates, Thresholds and Limits

/Superannuation Rates, Thresholds and Limits
Superannuation Rates, Thresholds and Limits2018-11-07T08:28:14+00:00

Superannuation Rates, Thresholds and Limits

Super Guarantee Contributions Rates

Financial Years

Contribution rate

1 July 2014 to 30 June 2021 9.5%
1 July 2021 to 30 June 2022 10.0%
1 July 2022 to 30 June 2023 10.5%
1 July 2023 to 30 June 2024 11.0%
1 July 2024 to 30 June 2025 11.5%
1 July 2025 On 12.0%

Maximum Concessional Super Contributions

 

Age Person turns during the tax year

2014-2017
$

2017-2018
$

60 and over 35,000 25,000
50 to 59 35,000 25,000
Under 50 30,000 25,000
Contribution limits are meant to rise in line with increases in AWOTE in $5,000 increments.

Maximum Non-concessional Contribution Limits

2015-2017

$

2017-2018

$

Maximum annual limit 180,000 100,000
Maximum limit under 3 year bring forward rule 540,000 300,000

The three year bring forward non-concessional contribution limit can be used when the annual limit has not been breached in the two previous years, and the member is under 65. In the financial year a person turns 65 they can use the bring forward limit as long as they pass the 40 hour work test if the contribution is made after they turn 65. If the bring forward rule is activated in the 2017 year, but the full $540,000 not contributed, the maximum non-concessional contribution for the 3 years will be $380,000.

Superannuation Guarantee Contribution Rates

Financial Year

Minimum Contribution Rate

Change

New Contribution Rate

2013 – 2014 0.25% 9.25%
2014 – 2015 0.25% 9.5%
2015 – 2016 to 2020 – 2021 0.00% 9.5%
2021 – 2022 0.50% 10.0%
2022 – 2023 0.50% 10.5%
2023 – 2024 0.50% 11.0%
2024 – 2025 0.50% 11.5%
2025 – 2026 0.50% 12.0%

Minimum Superannuation Pension Rates

Age of Super Fund Member

Minimum Pension Rate

2012-2013

2013-2014 and later

55 to 64 3.0% 4%
65 to 74 3.8% 5%
75 to 79 4.5% 6%
80 to 84 5.3% 7%
85 to 89 6.8% 9%
90 to 94 8.3% 11%
95 and over 10.5% 14%

Preservation Age

Date of Birth

Preservation Age

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
After 30 June 1964 60

When you Can Access your Superannuation?

Age

Conditions

65+ No conditions, super can be accessed at any time
60 to 64 Termination of employment
55 to 59 Transition to retirement pension
Retire and not intending to work more than 10 hours a week.
18 to 65 Severe financial hardship,
Terminal Illness
Compassionate grounds,
Permanent incapacity,
Temporary incapacity,
Death, and
Departing Australia permanently.
All Ages Death, refund of up to 85% of excess concessional contributions, or to pay tax division 293 contributions tax

Taxation of Lump Sum Super Payments

2016 and 2017

Age of Person Receiving the Payment

Tax Rate Payable *

60 and Over Nil
55 to 59
Up to Tax Free Threshold – $195,000 (2015- $185,000) Nil
Excess Over Tax Free Threshold 15%
Under 55 20%
Permanent Invalidity Payments Nil
Temporary Invalidity Payments At Marginal tax rate
Death benefits
To dependants Nil
To Non-dependants 15%
In addition to the income tax rate shown the medicare levy of 1.5% for 2014 and 2% for the 2015 and later years is also payable.

Tax Payable on Superannuation Pensions

Age of Person Receiving Pension

Tax Rate Payable *

60 and Over Nil
55 to 59 At marginal rate less 15% super pension offset
Under 55 At marginal tax rate
Permanent Invalidity Payments Nil
Temporary Invalidity Payments At marginal tax rate
Death benefits
To dependants over 60 Nil
To dependants under 60 At marginal rate less 15% super pension rebate

* In addition to tax rate payable Medicare Levy is also payable.


Australian Tax Offsets

Centrelink Pension And CSHC Tests