News
2007 Key Superannuation Rates and Thresholds
Release date: July 10 2007
Contributions
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 |
|---|---|
| 2007-08 | $50,000 |
Note: In accordance with section 960-285 of the Income Tax Assessment Act 1997 (ITAA 1997), the concessional contributions cap will be indexed in line with AWOTE, in increments of $5,000, from the 2008-09 income year.
Transitional arrangement for the concessional contributions cap
Between 1 July 2007 and 30 June 2012, a transitional concessional contributions cap will apply for people aged 50 or over. During this time, if you are aged 50 or over the annual cap will be $100,000. 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.
| Income Year | Amount of cap |
|---|---|
| 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 3 times the concessional contributions cap.
Superannuation Benefits
Low rate cap amount
From 1 July 2007 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 | Cap Amount |
|---|---|
| 2007-08 | $140,000 |
Note: In accordance with section 960-285 of the ITAA 1997, the low rate cap amount will be indexed in line with AWOTE, in increments of $5,000, from the 2008-09 income year.
Untaxed plan cap amount
From 1 July 2007 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 |
|---|---|
| 2007-08 | $1 million |
Note: In accordance with section 960-285 of the ITAA 1997, the CGT cap amount will be indexed in line with AWOTE, in increments of $5,000, from the 2008-09 income year.
Minimum Annual Pension Payments
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 annual pension percentages for each age group:
| Age | Minimum % withdrawal |
|---|---|
| Under 65 | 4% |
| 65-74 | 5% |
| 75-79 | 6% |
| 80-84 | 7% |
| 85-89 | 9% |
| 90-94 | 11% |
| 95 or more | 14% |
- Should the pension be a Transition to Retirement Income Stream (Non-Commutable Account Based Pension), then a maximum of 10% is imposed.
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 |
|---|---|
| 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 |
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 |
|---|---|---|
| 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 |
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 |