Superannuation rates and thresholds

The following is brief overview of the current key rates and thresholds that apply in relation to superannuation.

Preservation age

• Generally, you must reach preservation age before you can access your super. Use the following table to work out your 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

Super co-contribution

• The super co-contribution is a Federal Government initiative to assist eligible individuals to save for their retirement.
• If you are eligible and make personal non-concessional contributions, the government will match your contribution with a super co-contribution up to certain limits.

Co-contribution income thresholds

Year	Maximum entitlement	Lower income threshold	Higher income threshold
2010-11	$1,000	$31,920	$61,920
2009-10	$1,000	$31,920	$61,920

The lower income threshold is indexed in line with AWOTE each income year. However, government proposals have led to the lower limit threshold being frozen for the 2010-11 and 2011-12 years.

Example benefit for contributions made in the 2009-10 to 2011-12 years

	If your personal super contribution is:
	$1,000	$800	$500	$200
And your income is:	Your super co-contribution will be:
$31,920 or less	$1,000	$800	$500	$200
$34,921	$900	$800	$500	$200
$37,921	$800	$800	$500	$200
$40,921	$700	$700	$500	$200
$43,922	$600	$600	$500	$200
$46,922	$500	$500	$500	$200
$49,922	$400	$400	$400	$200
$52,922	$300	$300	$300	$200
$55,923	$200	$200	$200	$200
$58,923	$100	$100	$100	$100
$61,920	$0	$0	$0	$0

Superannuation guarantee (SG)

The superannuation guarantee requires employers to contribute a minimum of 9% of an eligible employee’s earnings (ordinary time earnings) to a complying super fund or retirement savings account (RSA). Your contributions need to be made at least every quarter.

Maximum super contribution base

• 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.
• Employers do not have to make SG contributions for earnings above this limit.

Income year	Per quarter
2010-11	$42,220

* Indexed in line with AWOTE each income year.

Contributions caps

Concessional contributions cap (CCC)

Concessional contributions include:

• employer contributions (including contributions made under a salary sacrifice arrangement)
• personal contributions claimed as a tax deduction by a self-employed person (that is, pre-tax income used).

Income year	Amount of cap
2010-11	$25,000
2009-10	$25,000

Concessional contributions cap for people 50 years old or over

• An increased annual cap of $50,000 applies, until 30 June 2012, for people 50 years old or over. The government proposed during the 2010 Federal Budget, a continuation of this increased cap post 30 June 2012 for individuals with total superannuation investments under $500,000.
• If you have more than one super account, all concessional contributions made are added together and count towards the cap.

Non-concessional contributions cap (NCCC)

Non-concessional contributions include:

• personal contributions for which you do not claim an income tax deduction (that is, after-tax income used).

Income year	Amount of cap
	< 65 (years *)	> 65 & < 75	75 +
2010-11	$150,000 (3 year limit of $450,000 can be brought forward)	$150,000	No NCC can be accepted
2009-10	$150,000 (3 year limit of $450,000 can be brought forward)	$150,000	No NCC can be accepted

* age on July 01.

Small business exclusion (CGT cap)

• Under the CGT cap, non-concessional super contributions from the sale of a small business will be excluded from the NCCC up to a lifetime limit amount. Small business sale proceeds above this lifetime limit will be included in the NCCC.

Income year	Lifetime limit
2010-11	$1,155,000

Untaxed plan cap amount

• The untaxed plan cap amount limits the concessional tax treatment of benefits that have not been subject to contributions tax in a super fund (such as some government funds).
• The untaxed plan cap amount applies to each super plan from which a person receives super lump sum member benefits.

Income year	Amount of cap *
2010-11	$1,155,000

* The untaxed plan cap amount is indexed in line with AWOTE, in increments of $5,000 (rounded).

Super lump sum tax table

Type of Benefit	Age upon receipt	Amount subject to tax	Maximum rate of tax (including Medicare levy)
Member benefit (taxable component – taxed element)	< preservation age	Whole amount	21.5%
	Preservation age but < 60	Below low rate cap amount*	Nil
		Above low rate cap amount*	16.5%
	60 +	Nil (non–assessable non–exempt income)	N/A
Member benefit (taxable component – untaxed element)	< preservation age	Up to untaxed plan cap amount^	31.5%
		Above untaxed plan cap amount^	46.5%
	Preservation age but < 60	Below low rate cap amount*	16.5%
		Above low rate cap amount* and below untaxed plan cap amount^	31.5%
		Above the untaxed plan cap amount^	46.5%
	60 +	Below the untaxed plan cap amount^	16.5%
		Above the untaxed plan cap amount^	46.5%
Death benefit lump sum paid to non-dependants (taxable component – taxed element)	Any	Whole amount	16.5%
Death benefit lump sum paid to non-dependants (taxable component – untaxed element)	Any	Whole amount	31.5%
Death benefit lump sum paid to dependants (taxable component – taxed and untaxed elements)	Any	Nil	N/A
Rollover (taxable component – taxed element)	Any	Nil (non–assessable non–exempt income)	N/A
Rollover (taxable component –untaxed element)	Any	Below untaxed plan cap amount^ is non–assessable non–exempt income	N/A
		Above the untaxed plan cap amount^	46.5%
Super lump sum (less than $200)	Any	Nil	N/A
Super lump sum (terminally ill recipient)	Any	Nil	N/A

* The application of the low rate threshold for super lump sum payments is capped at $160,000 (2010/11).
^ The untaxed plan cap is $1,155,000 (2010/11).

Payment levels from income streams (super)

• If you have commenced an allocated pension or annuity on or after 1 July 2007, a minimum amount is required to be paid to you each year.
• There is no maximum amount (excluding “Transition to Retirement” pensions), other than the prevailing balance of your account.

The following table shows the minimum percentage factor for each age group:

Age	Minimum % withdrawal (pa)	Temporary reduction to minimum limits (2010/11)*
Under 65	4%	2%
65-74	5%	2.5%
75-79	6%	3%
80-84	7%	3.5%
85-89	9%	4.5%
90-94	11%	5.5%
95 or more	14%	7%

* The reduction in the minimum payment amounts applies only to account-based annuities and pensions, allocated annuities and pensions, and market-linked annuities and pensions.

Super income stream tax tables

Taxed Fund

Tax-free component

The tax-free component of any income drawn is not assessable and not exempt income in all cases.

Taxable component

Age	Income stream
Age 60 +	Not assessable, not exempt income
Preservation age and < 60	Taxed at marginal tax rates (Tax offset of 15% is available)
< Preservation age	Taxed at marginal tax rates (no tax offset except 15% where a disability super benefit)

Medicare levy (1.5%) will apply if amounts are assessable.

Untaxed Fund

Tax-free component

The tax-free component of any income drawn is not assessable and not exempt income in all cases.

Taxable component

Age	Income stream
Age 60 +	Taxed at marginal rates (10% tax offset)
Preservation age and < 60	Taxed at marginal rates (no tax offset)
< Preservation age	Taxed at marginal rates (no tax offset)

Medicare levy (1.5%) will apply if amounts are assessable.

Employment termination payments

An employment termination payment (ETP) is a payment made in consequence of the termination of employment. It can include:

• amounts for unused rostered days off
• amounts in lieu of notice
• a gratuity or ‘golden handshake’
• an employee’s invalidity payment (for permanent disability, other than compensation for personal injury)
• certain payments after the death of an employee.

ETPs do not include:

• a payment for unused annual leave or unused long service leave
• the tax-free part of a genuine redundancy payment or an early retirement scheme payment.

ETP cap amount

• The amount up to the ETP cap amount will be taxed at a concessional rate.
• The amount in excess of the ETP cap amount will be taxed at the top marginal rate.

ETP cap amount for termination payments:

Income year	Amount of cap
	Life Benefit	Death Benefit
2010-11	$160,000	$160,000

* The ETP cap amount is indexed in line with AWOTE, in increments of $5,000 (rounded).

Transitional ETP cap amounts up to 30 June 2012

Transitional arrangements apply if you were entitled, as at 9 May 2006, to a payment made on the termination of employment under:

• a written contract
• an Australian or foreign law (or an instrument under such a law)
• a workplace agreement under the Workplace Relations Act 1996.

Employment termination payments made after 1 July 2007 (other than those made under the transitional arrangements) won’t be able to be contributed to or rolled over into super.

The taxable component of a transitional termination payment will be taxed at:

• no more than 15% up to the lower cap amount
• no more than 30% on the amount which exceeds the lower cap amount but does not exceed the upper cap amount
• the top marginal rate for amounts in excess of the upper cap amount.

Income year	Lower cap amount	Upper cap amount (not indexed)
2010-11	$160,000	$1 million

ETP tax table

Type of Benefit	Age upon receipt	Amount subject to tax	Maximum rate of tax (including Medicare levy)
Life benefit ETP (taxable component)	< Preservation age	< ETP cap amount	31.5%
	Preservation age +	< ETP cap amount	16.5%
	All ages	> ETP cap amount	46.5%
Transitional ETP (taxable component)	< Preservation age	< Upper cap amount	31.5%
	Preservation age +	< Lower cap amount	16.5%
		> Lower cap amount & < Upper cap amount	31.5%
	All ages	> Upper cap amount	46.5%
Death benefit ETP - non-dependants (taxable component)	All ages	< ETP cap amount	31.5%
		> ETP cap amount	46.5%
Death benefit ETP – dependants (taxable component)	All ages	< ETP cap amount	Nil (non–assessable non–exempt income)
		> ETP cap amount	46.5%