Super Contributions Acceptance
Contribution Rules
|
Age of Beneficiary |
Personal and Employer Contributions |
Spouse Contributions |
|
Under 65 |
Contributions can be received for any member under age 65. |
An individual may contribute for their spouse regardless of whether they or their spouse are working or the hours worked. |
|
Age 65 to 69 (inclusive) |
The fund may accept contributions that are made in respect of the member that are:
If the member has been gainfully employed for a least 40 hours in a period of not more than 30 consecutive days in the financial year, the fund may accept:
|
An individual (regardless of their own age) may contribute for their spouse if their spouse is gainfully employed for at least 40 hours in a period of not more than 30 consecutive days in that financial year. |
|
Age 70-74 (inclusive) |
The fund may accept contributions that are made in respect of the member that are:
If the member has been gainfully employed for a least 40 hours in a period of not more than 30 consecutive days in that financial year, the fund may accept:
Where such contributions are made, some individuals are eligible for an income tax deduction where the contribution is within 28 days after the month in which the person turns 75. *SG are only required to be made up to age 70. |
An individual's spouse can not contribute. |
|
Age 75 and over |
An individual cannot make contributions. Their employer may make industrial award/certified agreement contributions (no SG after age 70). |
An individual's spouse can not contribute. |
Superannuation Guarantee (SG)
- Max. Contribution Base: $40,170 (per quarter) for 2009/2010
- No SG payable if earnings <$450 in a month
|
Financial Year |
Contributions |
|
2002/2003 to present |
9% |
|
2001/2002 |
8% |
|
2000/2001 |
8% |
|
1999/2000 |
7% |
Concessional and Non-Concessional Superannuation Contributions
|
Age |
Concessional Contribution Cap (pa) |
Non-Concessional Contribution cap (pa) |
|
< 50 on last day of financial year |
$25,000 |
$150,000* or a 3 year limit of $450,000 |
|
50 an over but < 65 on last day of financial year |
$50,000** |
$150,000* or a 3 year limit of $450,000 |
|
65 and over on first day of financial year but < 75 on last day of financial year |
$50,000** |
$150,000* |
|
75 and over on first day of financial year |
$50,000 (mandated employer contributions only)** |
Not eligible to make non-concessional contributions |
* This limit applies from 2009/2010 and will be indexed periodically. Once triggered, the 3 year non-concessional cap is not indexed. Even if the 3 year cap is triggered under age 65, clients are limited to the annual cap once they are 65 (at the beginning of a financial year).
** This limit is not indexed and will apply up to 30 June 2012. From 1 July 2012, the indexed $25,000 cap will apply.
Superannuation Contributions Caps (inclusions and exclusions)
|
Superannuation Contribution Cap |
Contributions that count towards the contribution cap |
Contributions that do not count towards the contribution cap |
|
Concessional contribution cap |
|
|
|
Non-concessional contribution cap |
|
Taxation of Superannuation Interests
All payments made from a Superannuation Interest from 1 July 2007 will comprise of:
- a Taxable component and/or
- a Tax free component
The following table shows the taxation treatment of the Taxable Component of a superannuation benefit paid to a member of a fund.
|
Age |
Lump Sum |
Income Stream |
|
Age 60 and over |
Taxable component is tax fee |
Taxable component is tax free |
|
Preservation age to age 59 |
Taxable component is assessable income, taxed at 0% up to low rate threshold (see below). Amount above low rate threshold is taxed at 16.5%. |
Taxable component is assessable income, taxed at marginal rates, with tax offset equal to 15% of taxable component. |
|
Below preservation age |
Taxable component is taxed at 21.5%* |
Taxable component taxed at marginal tax rate - 15% rebate applies to superannuation disability income stream. |
* Includes a Medicare levy of 1.5% Superannuation Lump Sum Low Rate Threshold
|
Income Year |
Cap Amount |
|
2007 - 2008 |
$140,000 |
|
2008 - 2009 |
$145,000 |
|
2009 - 2010 |
$150,000 |
No tax is payable on above lifetime lump sum caps.
Taxation of Death Benefits (Dependant & Non-tax dependant)
Death benefits paid as a lump sum
Death benefits paid as a lump sum from either an accumulation interest or the commutation of a pension within the prescribed period will be taxed as follows:
|
Beneficiary Type |
Tax Component |
Tax Treatment |
|
Dependant for tax purposes |
Tax Free |
Tax Free |
|
Taxable - taxed and untaxed |
Tax Free |
|
|
Non-tax Dependant |
Tax Free |
Tax Free |
|
Taxable - taxed element |
16.5%* |
|
|
Taxable - untaxed element |
31.5%* |
* Includes a Medicare levy of 1.5%
Death benefits paid as a pension
From 1 July 2007, only dependants for tax purposes will be able to commence or continue a pension on death.
Dependants for tax purposes include: all children of the deceased under the age of 18, any spouse of the deceased (including a former spouse and a current or former de facto), any financially dependent child between 18 and 25, any financial dependent (other than a non-disabled child over 25) and any interdependent person.
The tax treatment for these beneficiaries will depend upon the age of the deceased (at death) or the age of the recipient (at the date of payment), as follows:
|
Age of deceased/recipient |
Tax Component |
Tax Treatment |
|
If either aged 60 or over |
Tax Free |
Tax Free |
|
Taxable - taxed element |
Tax Free |
|
|
If both under age 60 |
Tax Free |
Tax Free |
|
Taxable - taxed element |
Marginal tax rate, less 15% offset* |
* The income will be tax free once the recipient reaches age 60.
Minimum Pension Payments
From 1 July 2007, the minimum payment will be determined by multiplying the account balance at commencement and then at 1st July each year, by a percentage factor based on the client's age.
These percentage factors are as follows:
|
Your Age |
Percentage Factor |
|
55 to 64 |
4% |
|
65 to 74 |
5% |
|
75 to 79 |
6% |
|
80 to 84 |
7% |
|
85 to 89 |
9% |
|
90 to 94 |
11% |
|
95+ |
14% |
For the 2008/09 and 2009/10 financial years, minimum pension percentage factors have been halved in lieu of the Global Financial Crisis. This is to be reviewed for the 2010/11 financial year onwards.
Maximum Pension Payments
From 1 July 2007 there is no maximum limit to the pension payment. For transition to retirement income streams the maximum income limit will be 10% of the account balance.
