The following is brief overview of the current key rates and thresholds that apply in relation to superannuation.
The following is brief overview of the current key rates and thresholds that apply in relation to superannuation.
Reduction of the Governemtn co-contribution
Coinciding with the commencement of LISC from july 1 2012, the Government co-contribution (relevant to non-concessional contributions) is expected to decrease.
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.
How much you’ll receive depends on you income. For every dollar you contribute from your after-tax income, the Government will put in 50 cents, up to a maximum of $500. Use our contributions advisor calculator or the table below.
The superannuation guarantee requires employers to contribute a minimum of 9.5% 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.
* Indexed in line with AWOTE each income year.
Concessional contributions include:
The concessional contribution cap.
The Concessional contributions cap will be temporarily increased to $35,000 for the:
The temporary higher contributions include personal contributions for which you do not claim an income tax deduction.
Non-concessional contributions include:
* age on July 01.
* The untaxed plan cap amount is indexed in line with AWOTE, in increments of $5,000 (rounded).
* The application of the low rate threshold for super lump sum payments is capped at $195,000 (2016/17).
^ The untaxed plan cap is $1,415,000 (2016/17).
Tax-free component
The tax-free component of any income drawn is not assessable and not exempt income in all cases.
Taxable component
Medicare levy (2%) will apply if amounts are assessable.
Tax-free component
The tax-free component of any income drawn is not assessable and not exempt income in all cases.
Taxable component
Medicare levy (2%) will apply if amounts are assessable.
An employment termination payment (ETP) is a payment made in consequence of the termination of employment. It can include:
ETPs do not include:
ETP cap amount for termination payments:
* The ETP cap amount is indexed in line with AWOTE, in increments of $5,000 (rounded).
Transitional arrangements apply if you were entitled, as at 9 May 2006, to a payment made on the termination of employment under:
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:
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