The following thresholds relate to the 2016-2017. In the Federal Budget 2016 there were some major announcements which will effect the thresholds for the 2017-2018 year if the announcements are implemented. Therefore for long therm planning it is a good idea to be familiar with the proposed changes. For information about the proposed changes click here
Super Contributions
| Superannuation guarantee maximum contribution base | $51,620 per quarter ($206,480 pa) |
| 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 | $1.415 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 |
| $36,021 or less | Nil | $500 |
| $36,021 to $51,021 | (TI – $36,021) x 0.03333 | $500 – RI |
| $51,021 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 | $1,415 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 |
| $9,936 | $4,969 |
Termination Payments
| ETP cap amount | $195,000 |
| Whole-of-income cap amount | $180,000 |
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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.