Pam Roberts
Technical

Changes to Superannuation and Tax thresholds and caps

By Pam Roberts – Technical Services Manager

Thresholds and caps
2008/09
2009/10
Concessional contributions cap

Under age 50 on 30/6
Age 50 or more on 30/6


$50,000
$100,000


$55,000
$100,000
Non-concessional contributions cap

Non-concessional contributions cap
Option to bring forward next 2 years cap
- Also maximum single non-concessional contribution allowed to super fund
CGT cap amount (excluded from NCC cap)


$150,000
$450,000

$1.045m


$165,000
$495,000

$1.1m
Super lump sum benefits

Low rate cap. 
- 0% rate applies up to cap and 16.5% therefore if paid from age 55 to 59 (16.5% and 31.5% if untaxed fund).  
Untaxed plan cap


$145,000


$1.045m


$150,000


$1.1m
CGT Small Business Concession contributions cap

Lifetime limit
Small business retirement exemption lifetime limit


$1.045m $500,000


$1.1m
$500,000
Employment Termination Payments

Life benefit termination payments cap
- Up to cap taxable component taxed at 16.5% (age 55+) & 31.5% (under age 55).
Death benefit termination payments cap
- Up to cap taxable component tax free to dependant or 31.% to non dependant. 


$145,000

$145,000


$150,000

$150,000
Transitional Termination Payment (to 30/6/2012)

Directed termination payment concession threshold
- 15% tax on taxable component rolled over to super fund up to threshold.  
Lump sum termination payment lower cap
- Only if paid from age 55:  16.5% tax on taxable component up to cap
Lump sum termination payment upper cap
- 31.5% tax on taxable amount up to cap. 


$1m

$145,000

$1m


$1m

$150,000

$1m
Redundancy Payments/Approved early retirement schemes-Tax Free amount

Base amount; plus
Additional amount per year of service



$7350
$3,676



Not available yet
Super Guarantee - Maximum earnings base

Per quarter (Per annum)


$38,180
($152,720 p.a.)


Not available yet
Super co-contribution

Lower income threshold
- Maximum co-cont of $1500
Upper income threshold
- Co-cont ceases

$30,342

$60,342


Not available yet

Adviser note: traps with the non-concessional contributions cap

If a client triggers the option to bring forward the next two year’s worth of non-concessional contributions cap, they will not get the benefit of any later indexation to that cap.

For example, a client under age 65 makes a non-deductible personal contribution of $200,000 to her super fund during the 2008/09 financial year. By making a contribution over $150,000 (the non-concessional contribution cap for 2008/9), she triggers the bring-forward option. This means that any further contributions made over the following two years (up until 30 June 2011) will be subject to an absolute cap of $450,000. This applies even though the non-concessional contributions cap is indexed to $165,000 for 2009/10 and beyond.