Super Contributions

Superannuation guarantee maximum contribution base $50,810 per quarter
Concessional contributions cap for those under age 49 on 30 June 2015  $30,000
Concessional contributions cap for those age 49 or over on 30 June 2015  $35,000
Non-concessional contributions cap  $180,000/$540,000*
CGT cap $1.395 million**

*    People under age 65 at any time in the financial year may effectively bring forward two years’ worth of non-concessional contributions, allowing them to contribute $540,000 at any time over a three-year period without exceeding the cap.  If a person has invoked the two-year bring forward rule in a particular financial year, their non-concessional cap will remain at three times the non-concessional cap in the first year.

**  The CGT cap is a lifetime limit and is indexed annually and rounded down to the nearest $5,000.

Division 293 tax threshold

From 1 July 2012, Division 293 tax will be applied to certain super contributions to reduce the concessional tax treatment of those contributions made for very high income individuals.

The high income threshold is $300,000.

An individual’s income is added to certain super contributions and compared to the high income threshold. Division 293 tax is payable on the excess over the threshold, or on the super contributions, whichever is less. The rate of Division 293 tax is 15%.

Division 293 tax is not payable on excess concessional contributions that have been taxed under Division 292 (or refunded under section 292-467).

Government Co-Contribution***

 Total  Reduction in max co-contribution  Maximum income (TI)
(RI) co-contribution
$35,454 or less  Nil  $500
$35,455 to $50,454  (TI – $35,455) x 0.03333  $500 – RI
$50,455 or more Nil Nil

***   Payment rate is 50 cents for every dollar of personal contributions made by eligible persons.  The maximum co-contribution available is $500.  Total Income (TI) is assessable income plus reportable fringe benefits plus reportable employer super contributions, less business deductions (other than for work-related expenses or personal super contributions.)

Low Income Superannuation Contribution (LISC)

Adjusted taxable income       Contribution amount
$37,000 or less 15% of concessional contributions (subject to a maximum LISC of $500)
$37,001 or more Nil

Super Lump Sum Benefits

Low rate cap $195,000
Untaxed plan cap $1,395 million

Minimum and maximum percentage factors

These percentage factors apply to account-based pensions (including transition to retirement pensions), allocated and market linked pensions for 2015-16.

Age of recipient % factor
Under age 65 4%
65 to 74 5%
75 to 79 6%
80 to 84 7%
85 to 89 9%
90 to 94 11%
95 and older 14%

Tax Free part of genuine redundancy and early retirement scheme payments

First year For each completed base benefit year of service
$9,780 $4,891

Termination Payments

ETP cap amount $195,000

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Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.