Questions & Answers

What are the contribution rules?

Contribution rules (from 1 July 2007)

Contribution type	Member age under 67	Member age 67-69	Member age 70-74	Member age 75 +
Undeducted contributions	7	Must be gainfully employed at least on part-time basis 3,7,8	Must be gainfully employed at least on part-time basis 3,7,8	9
Eligible for co-contributions		7	Only if less than age 71 at end of financial year of contribution 7
Deductible contributions	If less than age 18, must have some income from eligible employment1 or income from the carrying on of a business2, but this income must make up less than 10% of assessable income.5,6	Must be gainfully employed at least on part-time basis3,6,8	Must be gainfully employed at least on part-time basis3,6,8	9
Employer contributions				9
Superannuation guarantee			4	4
Mandated employer contributions (e.g. under award)
Salary sacrifice				9
Downsizer contributions10

Please note that a rollover is not a contribution; rollovers can generally be undertaken at any age. Thus, while member contributions cannot be made after age 75, a CGT Exempt component (via the small business CGT Retirement Exemption) can be created and rolled over after age 75.

NOTES:

1. Eligible employment means: the holding of any office or appointment; or the performance of any functions or duties; or the engaging in of any work; or the doing of any acts or things that results in the person being treated as an employee for the purposes of the Superannuation Guarantee (Administration) Act 1992 (assuming that subsection 12 (11) of that Act had not been enacted).
2. Business refers to any profession, trade, employment, vocation or calling, but does not include occupation as an employee.
3. Gainfully employed at least on a part-time basis refers to someone who is gainfully employed for at least 40 hours in a period of not more than 30 consecutive days in that financial year. This employment period must be satisfied before the date of the contribution.
4. From 1 July 2013, employees over 70 will be entitled to super guarantee payments from their employer.
5. This deduction cannot create a tax loss, i.e. the person must have derived income from employment or business (excluding passive income) and the deduction cannot exceed that income.
6. Effective 1 July 2017, the 10% condition is removed for the 2017-2018 and future financial years.
7. Individual with a total superannuation balance of > $1.6 million as at 30 June of the previous financial year will no longer be eligible to make non-concessional contributions and government co-contributions.
8. From 1 July 2020, those aged 67-74 with a TSB below $300,000 are able to make voluntary contributions for 12 months from the end of the financial year in which they last met the work test.
9. Can contribute no later than 28 day from the end of the month in which a member turns 75 years and satisfied work test or work test exemption.
10. No upper age limit from 1 July 2018 for over 65 years old.

What are concessional contributions caps?

Year	Contribution cap for ages below 50 years	Contribution cap for ages 50 years and above
2021-2022	$27,5005	$27,5005
2020-2021	$25,000 5	$25,000 5
2019-2020	$25,000 5	$25,000 5
2018-2019	$25,000 5	$25,000 5
2017-2018	$25,000	$25,000
2016-2017	$30,000 4	$35,000
2015-2016	$30,000 3	$35,000
2014-2015	$30,000 2	$35,000
2013-2014	$25,000	$25,000
2012-2013	$25,000	$25,000 1
2011-2012	$25,000	$50,000
2010-2011	$25,000	$50,000
2009-2010	$25,000	$50,000
2008-2009	$50,000	$100,000
2007-2008	$50,000	$100,000
2006-2007	n/a	n/a

1. If age 59 years or over on 30 June 2013, concessional contributions cap is $35,000.
2. If age 49 years or over on 30 June 2014, concessional cap is $35,000.
3. If age 49 years or over on 30 June 2015, concessional cap is $35,000.
4. If age 49 years or over on 30 June 2016, concessional cap is $35,000.
5. From 1 July 2018 members can accrue any unused concessional contribution cap for a maximum of 5 years. However member can only make additional concessional contribution for any unused amount from 2019-2020 financial year onwards, provided their total superannuation balance at the end of 30 June of the previous financial year is less than $500,000.

What are non-concessional contributions caps?

Year	Contribution cap
2021-2022	$110,0001
2020-2021	$100,000 1
2019-2020	$100,000 1
2018-2019	$100,000 1
2017-2018	$100,000 1
2016-2017	$180,000
2015-2016	$180,000
2014-2015	$180,000
2013-2014	$150,000
2012-2013	$150,000
2011-2012	$150,000
2010-2011	$150,000
2009-2010	$150,000
2008-2009	$150,000
2007-2008	$150,000
2006-2007	$1,000,000

1. Individual with a total superannuation balance of equal to or more than $1.6 million as at 30 June of the previous financial year will no longer be eligible to make non-concessional contributions and government co-contributions. Refer to bring forward contribution caps table below if the individual triggers bring forward contribution from 1 July 2017.
2. Non-concessional contributions cap exemptions.

• • Proceeds from settlement of personal injury
  • Government co-contribution payments
  • Rollovers from taxed superannuation funds
  • Proceeds from sale of small business CGT assets up to cap limit. (Refer to lifetime capital gain tax cap limit table below.)
  • Downsizer contributions for those who are 65 years old or older up to lifetime $300,000 limit.

What is lifetime capital gain tax cap limit?

Year	CGT Cap amount
2021-2022	$1,615,000
2020-2021	$1,565,000
2019-2020	$1,515,000
2018-2019	$1,480,000
2017-2018	$1,445,000
2016-2017	$1,415,000
2015-2016	$1,395,000
2014-2015	$1,355,000
2013-2014	$1,315,000
2012-2013	$1,255,000
2011-2012	$1,205,000
2010-2011	$1,155,000
2009-2010	$1,100,000
2008-2009	$1,045,000
2007-2008	$1,000,000

What is bring forward contribution cap?

From 1 July 2017 to 30 June 2021, the bring forward contribution cap amount and period is dependent on member’s total superannuation balance at 30 June of the previous financial year.

Total superannuation balance on 30 June of the previous financial year	Non-concessional contribution cap for the first year	Bring forward period
< $1.4M	$300,000	3 years 1
$1.4M to below $1.5M	$200,000	2 years 1
$1.5M to below $1.6M	$100,000	1 year - none available but the member can contribute up to the general non-concessional cap
$1.6M or over	Nil	N/A

1. If member has triggered the bring forward rule and has not used up all the bring forward cap, member can contribute the remaining of the bring forward cap in subsequent years provided their total superannuation balance as at 30 June of the previous financial year is below the general transfer balance cap.

From 1 July 2021

Total superannuation balance on 30 June of previous financial year	Non-concessional contribution cap for the first year	Bring forward period
< $1.48M	$330,000	3 years 1
$1.48 -< $1.59M	$220,000	2 years 1
$1.59 -<$1.7M	$110,000	1 year - none available but the member can contribute up to the general non-concessional cap
$1.7M	Nil	N/A

1. Members lock in their bring forward period and maximum amount in the year they exceed their NCC cap. If triggered prior to 1 July 2021, indexation of NCC cap does not apply.

What is the Superannuation Guarantee Maximum Contribution base per quarter?

Year	Contribution cap per quarter
2021-2022	$58,920
2020-2021	$57,090
2019-2020	$55,270
2018-2019	$54,030
2017-2018	$52,760
2016-2017	$51,620
2015-2016	$50,810
2014-2015	$49,430
2013-2014	$48,040
2012-2013	$45,750
2011-2012	$43,820
2010-2011	$42,220
2009-2010	$40,170
2008-2009	$38,180
2007-2008	$36,470
2006-2007	$35,240

What is transfer balance cap?

From 1 July 2017, transfer balance cap applies as the maximum amount each member can transfer into retirement phase.

Year	General Transfer Balance Cap
2021-2022	$1,700,000 1
2020-2021	$1,600,000 1
2019-2020	$1,600,000 1
2018-2019	$1,600,000 1
2017-2018	$1,600,000 1

1. Member’s transfer balance cap is equal to the general transfer balance cap. Members with a transfer balance account (TBA) before 1 July 2021, will have a personal TBC between $1.6m – $1.7m, based on their highest balance in their TBA.
2. The cap operates on the basis of ‘credits’ counting to the cap and ‘debits’ removing value from the cap.

Credits	Debits
The value of super interest supporting income streams on 30 June 2017	Commutations of superannuation income streams
Commencement of new superannuation income streams from 1 July 2017 onwards	Structured settlement payments contributed to superannuation
The value of reversionary income streams when an individual becomes entitled to them	Certain payments arising from family law splits, fraudulent or void transaction
LRBA loan repayment when the LRBA was entered into after 1 July 2017 and the payments result in an increase in the value of the members super interest supporting their retirement phase income stream.	Trustee fails to pay the minimum pension and the income stream stops being in retirement phase
Notional earnings accruing to excess transfer balance amounts

When to lodge transfer balance account reporting (TBAR)?

• SMSFs that have ANY members with a TSB of $1m or more on 30 June the year before the first member starts their income stream, must report within 28 days after the end of the quarter in which the event occurs.
• An SMSF set as annual or quarterly reporting does not change.
• SMSFs that have any members with a TSB less than $1m can choose to report any event impacting its members’ TBA annually when the SMSF annual return is due.

What is the preservation age?

Date of birth	Preservation age
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

What is ‘basic conditions of release’?

Retirement

• Preservation age to age 60 – must be permanently retired
• Age 60-64 – ceased employment after attaining age 60

Attaining age 65

Other

• Terminal medical condition
• Permanent incapacity
• Temporary incapacity
• Death
• Compassionate grounds including access to $10,000 in 2019/2020 and an additional $10,000 between 1 July 2020 and 31 December 2020 if financially impacted by COVID-19
• Severe financial hardship
• Temporary resident departing Australia permanently
• First Home Super Saver Scheme
• Cease employment and account balance <$200

Conditions of release (other than Transition to Retirement Income Streams (TRIS))

Preservation age	Condition of release	Benefits
55 to 60 years	+ Permanently retired	= Benefits can be accessed
60 to 65 years	+ Permanently retired or not	= Benefits can be accessed
Over 65 years	No other condition or restriction to comply

What is minimum annual pension?

Age group	2007-2008	2008-2009, 2009-2010, 2010-2011	2011-2012, 2012-2013	2013-2014, 2014-2015 2015-2016, 2016-2017 2017-2018, 2018-2019 2019-2020, 2020-2021, 2021-2022
Under 65	4%	4% (2% 1)	4% (3% 2)	4%
65 - 74	5%	5% (2.5% 1)	5% (3.75% 2)	5%
75 - 79	6%	6% (3% 1)	6% (4.5% 2)	6%
80 - 84	7%	7% (3.5% 1)	7% (5.25% 2)	7%
85 - 89	9%	9% (4.5% 1)	9% (6.75% 2)	9%
90 - 94	11%	11% (5.5% 1)	11% (8.25% 2)	11%
95+	14%	14% (7% 1)	14% (10.5%2)	14%

NOTES:
No maximum limit applies for account-based pensions (other than balance of account), 10% max limit applies to Transition to Retirement Pensions.

1. For 2008/09, 2009/10 and 2010/11 financial years, the minimum limits has been reduced by 50%.
2. For 2011/12 and 2012/13 financial years, the minimum limit has been reduced by 25%.
3. For 2019/2020, 2020/2021 and 2021/2022 financial years, the minimum limits has been reduced by 50% due to impact of COVID-19

What tax is payable on pension payments from taxed fund?

Age group	Tax payable
60 and over	Not assessable, not exempt income 2
Below preservation age	- Taxed at marginal rates with no tax offset - Tax offset of 15% is available if a disability super benefit
Over preservation age and under 60	Taxed at marginal rates with 15% tax offset
Over 60	All benefits tax-free

IMPORTANT NOTE:

1. Superannuation benefit payment from untaxed funds (i.e.: GESB) in pension and/or lump sum form are subject to different tax rates and may NOT be completely tax-free to individuals over age 60.
2. From 1 July 2017, if members are receiving capped defined benefit income streams (including lifetime pensions/ annuities, life expectancy pensions/ annuities existing prior to 1 July 2017 and market-linked pensions/annuities existing prior to 1 July 2017) and the annual pension payment is more than the defined benefit income cap, 50% of the excess amount is taxed at members’ marginal rate.
3. On 1 July 2017, an individual on a transition to retirement who has not met a condition of release would not satisfy as an income stream in retirement phase and would not eligible for exempt current pension income (ECPI).

Year	Defined benefit income cap
2021-2022	$106,520
2020-2021	$100,000
2019-2020	$100,000
2018-2019	$100,000
2017-2018	$100,000

What are low-rate cap amounts for SMSF lump sum withdrawals?

Year	Amount
2021-2022	$225,000
2020-2021	$215,000
2019-2020	$210,000
2018-2019	$205,000
2017-2018	$200,000
2016-2017	$195,000
2015-2016	$195,000
2014-2015	$185,000
2013-2014	$180,000
2012-2013	$175,000
2011-2012	$165,000
2010-2011	$160,000
2009-2010	$150,000
2008-2009	$145,000
2007-2008	$140,000

What are tax rates on lump sum superannuation benefit payments from taxed funds?

Age of taxpayer at date of payment	(1) Tax-free component	(2) Taxable component (Element taxed in the fund)
Below preservation age	0%	20% (excluding Medicare Levy)
Preservation age - 59 - up to low-rate cap - amount over low-rate cap	0%	0% 15% (excluding Medicare Levy)
60 and over	0%	0%

(1) Tax Free Component includes total of Undeducted Contributions, Pre-July 1983 Component, CGT Exempt Component, Concessional Component and Post-June 1994 Invalidity Component crystallised as at 1 July 2007 plus subsequent non-concessional contributions.
(2) Taxed component equates to the value of the superannuation interest less the Tax-Free Component. The total entitlement of an individual in a SMSF is treated as one interest (excluding the balance attributable to an income stream that has begun to be paid from the SMSF).

IMPORTANT NOTE:
Superannuation benefit payment from untaxed funds (i.e.: GESB) in pension and/or lump sum form are subject to different tax rates and may NOT be completely tax-free to individuals over age 60.

What tax is payable on lump sum death benefit payments?

Lump sum component	Dependent	Non-dependent
Tax-free component	0% Non-assessable Non-exempt income	0% Non-assessable Non-exempt income
Taxable component - taxed element	0% Non-assessable Non-exempt income	15% Plus Medicare Levy
Taxable component - non-taxed component	0% Non-assessable Non-exempt income	30% Plus Medicare Levy

• Limited by the beneficiary’s Transfer Balance Cap (TBC)
• Can only be paid to a dependant
• When paid to a child of the member, they are:
  – Aged less than 18
  – Aged 18-24 and financial dependant
  – Aged 18 or over & disabled (s.8(1) Disability Services Act 1986)

What are the tax rates for income stream death benefit payments?

Income component	Age at payment date	Amount subject to tax	Tax rate (excludes Medicare Levy)
Tax-free component	Any age	None	Nil
Taxable component - Taxed element	Either the deceased or dependent aged 60 or over	None	Nil
	Both deceased and the dependent aged under 60	Whole amount	Taxed at marginal tax rates, with a 15% tax offset
Taxable component - Untaxed element	Either the deceased or dependent aged 60 or over	Whole amount	Taxed at marginal tax rates, with a 10% tax offset
	Both deceased and the dependent aged under 60	Whole amount	Taxed at marginal tax rates, with no tax offset

• Limited by the beneficiary’s Transfer Balance Cap (TBC)
• Can only be paid to a dependant
• When paid to a child of the member, they are:
  –Aged less than 18
  – Aged 18-24 and financial dependant
  – Aged 18 or over & disabled (s.8(1) Disability Services Act 1986)

What are the resident marginal tax rates?

2021-2022	Tax on this income
$0-$18,200	Nil
$18,201 - $45,000	19c for each $1 over $18,200
$45,001 - $120,000	$5,092 plus 32.5c for each $1 over $45,000
$120,001 - $180,000	$29,467 plus 37c for each $1 over $120,000
$180,001 and over	$51,667 plus 45c for each $1 over $180,000

The above rates do not include Medicare levy of 2%

2020-2021	Tax on this income
$0-$18,200	Nil
$18,201 - $37,000	19c for each $1 over $18,200
$37,001 - $90,000	$3,572 plus 32.5c for each $1 over $37,000
$90,001 - $180,000	$20,797 plus 37c for each $1 over $90,000
$180,001 and over	$54,097 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 2%.

Income 2019-2020	Tax on this income
0 – $18,200	Nil
$18,201 – $37,000	19c for each $1 over $18,200
$37,001 – $90,000	$3,572 plus 32.5c for each $1 over $37,000
$90,001 – $180,000	$20,797 plus 37c for each $1 over $90,000
$180,001 and over	$54,097 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 2%.

Income 2018-2019	Tax on this income
0 – $18,200	Nil
$18,201 – $37,000	19c for each $1 over $18,200
$37,001 – $90,000	$3,572 plus 32.5c for each $1 over $37,000
$90,001 – $180,000	$20,797 plus 37c for each $1 over $90,000
$180,001 and over	$54,097 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 2%.

Income 2017-2018	Tax on this income
0 – $18,200	Nil
$18,201 – $37,000	19c for each $1 over $18,200
$37,001 – $87,000	$3,572 plus 32.5c for each $1 over $37,000
$87,001 – $180,000	$19,822 plus 37c for each $1 over $87,000
$180,001 and over	$54,232 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 2%.
The temporary budget repair levy ceased applying from 1 July 2017.

Income 2016-2017	Tax on this income
$0 - $18,200	Nil
$18,201 - $37,000	19c for each $1 over $18,200
$37,001 - $87,000	$3,572 plus 32.5c for each $1 over $37,000
$87,001 - $180,000	$19,822 plus 37c for each $1 over $87,000
$180,001 and over	$54,232 plus 47c** for each $1 over $180,000

**Including the Temporary Budget Repair Levy.
The 2% Temporary Budget Repair Levy will expire at the end of the 2017 income year, returning the effective top marginal tax rate to 45%.
The above rates do not include the medical levy of 2%.

Income 2015-2016	Tax on this income
$0 - $18,200	Nil
$18,201 - $37,000	19c for each $1 over $18,200
$37,001 - $80,000	$3,572 plus 32.5c for each $1 over $37,000
$80,001 - $180,000	$17,547 plus 37c for each $1 over $80,000
$180,001 and over	$54,547 plus 47c** for each $1 over $180,000

**Including the Temporary Budget Repair Levy. The above rates do not include the Medical levy of 2%.

Income 2014-2015	Tax on this income
$0 - $18,200	Nil
$18,201 - $37,000	19c for each $1 over $18,200
$37,001 - $80,000	$3,572 plus 32.5c for each $1 over $37,000
$80,001 - $180,000	$17,547 plus 37c for each $1 over $80,000
$180,001 and over	$54,547 plus 47c** for each $1 over $180,000

** Including the Temporary Budget Repair Levy. The above rates do not include the Medical levy of 2%.

Income 2013-2014	Tax on this income
$0 - $18,200	Nil
$18,201 - $37,000	19c for each $1 over $18,200
$37,001 - $80,000	$3,572 plus 32.5c for each $1 over $37,000
$80,001 - $180,000	$17,547 plus 37c for each $1 over $80,000
$180,001 and over	$54,547 plus 45c for each $1 over $180,000

The above rates do not include the Medical levy of 1.5%.

Income 2012-2013	Tax on this income
$0 - $18,200	Nil
$18,201 - $37,000	19c for each $1 over $18,200
$37,001 - $80,000	$3,572 plus 32.5c for each $1 over $37,000
$80,001 - $180,000	$17,547 plus 37c for each $1 over $80,000
$180,001 and over	$54,547 plus 45c for each $1 over $180,000

Income 2011-2012	Tax on this income
$0 - $6,000	Nil
$6,001 - $37,000	15c for each $1 over $6,000
$37,001 - $80,000	$4,650 plus 30c for each $1 over $37,000
$80,001 - $180,000	$17,550 plus 37c for each $1 over $80,000
$180,001 and over	$54,550 plus 45c for each $1 over $180,000

The above rates do not include the flood levy.

Income 2010-2011	Tax on this income
$0 - $6,000	Nil
$6,001 - $37,000	15c for each $1 over $6,000
$37,001 - $80,000	$4,650 plus 30c for each $1 over $37,000
$80,001 - $180,000	$17,550 plus 37c for each $1 over $80,000
$180,001 and over	$54,550 plus 45c for each $1 over $180,000

Income 2009-2010	Tax on this income
$0 - $6,000	Nil
$6,001 - $35,000	15c for each $1 over $6,000
$35,001 - $80,000	$4,350 plus 30c for each $1 over $35,000
$80,001 - $180,000	$17,850 plus 38c for each $1 over $80,000
$180,001 and over	$55,850 plus 45c for each $1 over $180,000

Income 2008-2009	Tax on this income
$0 - $6,000	Nil
$6,001 - $34,000	15c for each $1 over $6,000
$34,001 - $80,000	$4,200 plus 30c for each $1 over $34,000
$80,001 - $180,000	$18,000 plus 40c for each $1 over $80,000
$180,001 and over	$58,000 plus 45c for each $1 over $180,000

Income 2007-2008	Tax on this income
$0 - $6,000	Nil
$6,001 - $30,000	15c for each $1 over $6,000
$30,001 - $75,000	$3,600 plus 30c for each $1 over $30,000
$75,001 - $150,000	$17,100 plus 40c for each $1 over $75,000
$150,001 and over	$47,100 plus 45c for each $1 over $150,000

Income 2006-2007	Tax on this income
$0 - $6,000	Nil
$6,001 - $25,000	15c for each $1 over $6,000
$25,001 - $75,000	$2,850 plus 30c for each $1 over $25,000
$75,001 - $150,000	$17,850 plus 40c for each $1 over $75,000
$150,001 and over	$47,850 plus 45c for each $1 over $150,000