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These are the key rates and thresholds that apply in relation to superannuation contributions and benefits, superannuation guarantee and co-contributions.
Contribution Caps
Concessional contributions cap
Concessional contributions include employer contributions (including contributions made under a salary sacrifice arrangement) and personal contributions claimed as a tax deduction by a self-employed person.
Income year |
Amount of cap |
2009-10 |
$25,000 - Proposed |
| 2008-09 | $50,000 |
| 2007-08 | $50,000 |
In accordance with section 960-285 of the Income Tax Assessment Act 1997 (ITAA 1997), the concessional contributions cap is indexed in line with AWOTE, in increments of $5,000 (rounded down).
Transitional arrangement for the concessional contributions cap
A transitional concessional contributions cap applies until 30 June 2012 for people aged 50 or over. If you are aged 50 or over the annual cap will be $50,000 (proposed). If you have more than one fund, all concessional contributions made to all your funds are added together and count towards the cap.
Non-concessional contributions cap
Non-concessional contributions include personal contributions for which you do not claim an income tax deduction. In future, the non-concessional cap will be six times the indexed concessional cap.
Income year |
Amount of cap |
2009-10 |
$150,000 - Proposed |
| 2008-09 | $150,000 |
| 2007-08 | $150,000 |
(Note the ‘bring-forward’ option available, meaning that people under 65 years of age can make non-concessional contributions of up to $450,000 over a three-year period.)
Note: In accordance with subsection 292-85(2) of the ITAA 1997, the non-concessional cap for an income year is three times the concessional contributions cap.
CGT cap amount
Under the CGT cap, you can only exclude up to the CGT cap amount in non-concessional super contributions from the non-concessional contributions cap during your lifetime. The CGT cap applies to all excluded CGT contributions, whether they were made between 10 May 2006 and 30 June 2007 or after 30 June 2007.
Income year |
Amount |
2009-10 |
$1.1 milion |
| 2008-09 | $1.045 million |
| 2007-08 | $1 million |
Note: In accordance with section 960-285 of the ITAA 1997, the CGT cap amount is indexed in line with AWOTE, in increments of $5,000 (rounded down).
Superannuation Benefits
Low rate cap amount
The application of the low rate threshold for superannuation lump sum payments is capped. The low rate cap amount is reduced by any amount previously applied to the low rate threshold.
Income year |
Amount of cap |
2009-10 |
$150,000 |
| 2008-09 | $145,000 |
| 2007-08 | $140,000 |
Note: In accordance with section 960-285 of the ITAA 1997, the low rate cap amount is indexed in line with AWOTE, in increments of $5,000 (rounded down).
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 superannuation fund. The untaxed plan cap amount applies to each superannuation plan from which a person receives superannuation lump sum member benefits.
Income year |
Amount of cap |
2009-10 |
$1.1 million |
| 2008-09 | $1.045 million |
| 2007-08 | $1 million |
Note: In accordance with section 960-285 of the ITAA 1997, the untaxed plan cap amount is indexed in line with AWOTE, in increments of $5,000 (rounded down).
Minimum annual payments for superannuation income streams
Once you start a pension on or after 1 July 2007, a minimum amount is required to be paid each year. There is no maximum amount other than the balance of your super account. The following table shows minimum percentage factor for each age group:
Age |
Minimum % withdrawal (other than for the year 1 July 2008 to 30 June 2009 and 1 July 2009 to 30 June 2010)* |
Minimum % withdrawal for the year 1 July 2009 to 30 June 2010 for certain pensions and annuities* |
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 for the year 1 July 2008 to 30 June 2009 applies to account-based annuities and pensions, allocated annuities and pensions, and market-linked annuities and pensions. This temporary measure addresses concerns that the minimum payment amounts for the year 1 July 2008 to 30 June 2009 were set on the basis of account balances at 1 July 2008, when equity values were significantly higher. Also note the Budget announcement of the continuation of the existing pension draw down relief to 2009-10. This will be confirmed on this webpage when amendments have been made to the legislation.
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 |
|
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 Lump Sum Tax Table
Income component derived in the income year |
Age at the date payment is received |
Amount subject to Tax |
Maximum rate of Tax (including Medicare levy) |
Member benefit – taxable component – taxed element |
Under preservation age |
Whole amount |
21.5% |
At or above preservation age and under 60 |
Amount up to the low rate cap amount |
Nil |
|
Amount above the low rate cap amount |
16.5% |
||
Aged 60 and above |
Whole amount |
Nil |
|
Member benefit – taxable component – untaxed element |
Under preservation age |
Amount up to untaxed plan cap amount |
31.5% |
Amount above untaxed plan cap amount |
46.5% |
||
At or above preservation age and under 60 |
Amount up to the low rate cap amount |
16.5% |
|
Amount above the low rate cap amount and up to the untaxed plan cap amount |
31.5% |
||
Amount above the untaxed plan cap amount |
46.5% |
||
Aged 60 and above |
Amount up to the untaxed plan cap amount |
16.5% |
|
Amount above the untaxed plan cap amount |
46.5% |
||
Death benefit lump sum benefit paid to non-dependants – taxable component – taxed element |
Any |
Whole Amount |
16.5% |
Death benefit lump sum benefit paid to non-dependants – taxable component – untaxed element |
Any |
Whole Amount |
31.5% |
Death benefit lump sum benefit paid to dependants – taxable component – taxed and untaxed elements |
Any |
None |
Nil |
Rollover superannuation benefits – taxable component – taxed element |
Any |
Whole Amount |
Nil |
Rollover superannuation benefits – taxable component – untaxed element |
Any |
Amount up to the untaxed plan cap amount |
Nil |
Amount above the untaxed plan cap amount |
46.5% |
||
Superannuation lump sum benefits less than $200 |
Any |
None |
Nil |
Super Income Stream Tax Tables
Taxed Element in the fund of a superannuation income stream
The table below summarises the taxation of a superannuation income stream paid with a taxed element in the fund in 2009/10.
The tax free component is not included. This component is not assessable income and not exempt income in all cases.
Age of recipient |
Income stream |
Age 60 and over |
Not assessable, not exempt income |
At or above preservation age and under 60 |
Taxed at marginal tax rates |
Under preservation age |
Taxed at marginal tax rates, with no tax offset |
Note: Medicare levy (1.5%) is added to whichever rate of tax applies.
Untaxed Element in the fund of a superannuation income stream
The table below summarises the taxation of a superannuation member income stream paid with an untaxed element in the fund in 2009/10.
The tax free component is not included. This component is not assessable income and not exempt income in all cases.
Age of recipient |
Income stream |
Age 60 and over |
Taxed at marginal rates, with a 10% tax offset |
At or above preservation age and under 60 |
Taxed at marginal rates, with no tax offset |
Under preservation age |
Taxed at marginal rates, with no tax offset |
Note: Medicare levy (1.5%) is added to whichever rate of tax applies.
Superannuation Guarantee
The superannuation guarantee charge percentage (%)
The superannuation guarantee requires employers to provide sufficient superannuation support for their employees. You are obliged to contribute a minimum of 9% of an eligible employee’s earnings base to a complying superannuation fund or retirement savings account (RSA). Your contributions need to be made at least every quarter (that is, every three months).
The charge percentage is set out in the law. For 2002–03 and subsequent years, the rate is 9% of each employee’s earnings base.
Maximum superannuation contribution base
The maximum superannuation contribution base is used to determine the maximum limit on any individual employee's earnings base for each quarter of any financial year. You do not have to provide the minimum support for the part of earnings above this limit.
Income year |
Per quarter |
2009-10 |
$40,170 |
2008-09 |
$38,180 |
2007-08 |
$36,470 |
2006–07 |
$35,240 |
2005–06 |
$33,720 |
2004–05 |
$32,180 |
2003–04 |
$30,560 |
2002–03 |
$29,220 |
2001–02 |
$27,510 |
2000–01 |
$26,300 |
1999–2000 |
$25,240 |
1998–99 |
$24,480 |
1997–98 |
$23,630 |
1996–97 |
$22,590 |
1995–96 |
$21,720 |
1994–95 |
$20,780 |
1993–94 |
$20,160 |
1992–93 |
$20,000 |
Note: In accordance with section 9 of the Superannuation Guarantee (Administration) Act 1992, the maximum superannuation contributions base is indexed in line with AWOTE each income year.
Super Co-Contribution
The Super Co-contribution is a helping hand from the Australian Government to assist eligible individuals to save for their retirement. If you are eligible and make personal super contributions, the government will match your contribution with a Super Co-contribution up to certain limits.
Co-contribution income thresholds
Year |
Lower Income Threshold |
Higher Income Threshold |
2009-2010 |
$31,920 |
$61,920 |
2008-09 |
$30,342 |
$60,342 |
2007-08 |
$28,980 |
$58,980 |
2006-07 |
$28,000 |
$58,000 |
2005-06 |
$28,000 |
$58,000 |
2004-05 |
$28,000 |
$58,000 |
2003-04 |
$27,500 |
$40,000 |
There is a proposed temporary reduction in the superannuation co-contribution matching rate from 150% to 100% for contributions made between 1 July 2009 and 30 June 2012 and to 125% for contributions made between 1 July 2012 and 30 June 2014. The matching rate will return to 150% for contributions made from 1 July 2014.
Contributions made from 1 July 2008
|
If your personal super contribution is: |
|||
|
$1,000 |
$800 |
$500 |
$200 |
And your income is: |
Your Super Co-contribution will be: |
|||
$30,342 or less |
$1,500 |
$1,200 |
$750 |
$300 |
$32,342 |
$1,400 |
$1,200 |
$750 |
$300 |
$34,342 |
$1,300 |
$1,200 |
$750 |
$300 |
$36,342 |
$1,200 |
$1,200 |
$750 |
$300 |
$38,342 |
$1,100 |
$1,100 |
$750 |
$300 |
$40,342 |
$1,000 |
$1,000 |
$750 |
$300 |
$42,342 |
$900 |
$900 |
$750 |
$300 |
$42,342 |
$800 |
$800 |
$750 |
$300 |
$44,342 |
$700 |
$700 |
$700 |
$300 |
$46,342 |
$600 |
$600 |
$600 |
$300 |
$48,342 |
$500 |
$500 |
$500 |
$300 |
$50,342 |
$400 |
$400 |
$400 |
$300 |
$52,342 |
$300 |
$300 |
$300 |
$300 |
$54,342 |
$200 |
$200 |
$200 |
$200 |
$56,342 |
$100 |
$100 |
$100 |
$100 |
$60,342 |
$0 |
$0 |
$0 |
$0 |
Note: In accordance with section 10A of the Superannuation (Government Co-contributions for Low Income Earners) Act 2003, the lower income threshold is indexed in line with AWOTE each income year.
Contributions made from 1 July 2007
|
If your personal super contribution is: |
|||
|
$1,000 |
$800 |
$500 |
$200 |
And your income is: |
Your Super Co-contribution will be: |
|||
$28,980 or less |
$1,500 |
$1,200 |
$750 |
$300 |
$30,980 |
$1,400 |
$1,200 |
$750 |
$300 |
$32,980 |
$1,300 |
$1,200 |
$750 |
$300 |
$34,980 |
$1,200 |
$1,200 |
$750 |
$300 |
$36,980 |
$1,100 |
$1,100 |
$750 |
$300 |
$38,980 |
$1,000 |
$1,000 |
$750 |
$300 |
$40,980 |
$900 |
$900 |
$750 |
$300 |
$42,980 |
$800 |
$800 |
$750 |
$300 |
$44,980 |
$700 |
$700 |
$700 |
$300 |
$46,980 |
$600 |
$600 |
$600 |
$300 |
$48,980 |
$500 |
$500 |
$500 |
$300 |
$50,980 |
$400 |
$400 |
$400 |
$300 |
$52,980 |
$300 |
$300 |
$300 |
$300 |
$54,980 |
$200 |
$200 |
$200 |
$200 |
$56,980 |
$100 |
$100 |
$100 |
$100 |
$58,980 |
$0 |
$0 |
$0 |
$0 |
Disclaimer
This document is to be used as general information only and should not be considered a comprehensive statement on any matter and should not be relied upon as such. This document has been prepared without taking into account any individual objectives, financial situation or needs.No member of Evolution Super, nor any of their employees or directors gives any warranty of accuracy or reliability nor accepts any liability in any other way, including by reason of negligence for any errors or omissions contained herein, to the extent permitted by law.This document may not be used or reproduced without the prior consent of the Evolution Super.Please contact Evolution Super on (08) 8271 2711 if you would like more information.