The Tax Office has updated the superannuation rates and threshold for the 2014 /2015 financial year.

 Concessional contributions cap

These include employer contributions (including contributions made under a salary sacrifice arrangement) and personal contributions claimed as a tax deduction by a self-employed person. 

Income Year

Amount of cap

2014/15

$30,000

2013/14

$25,000

 

If you are at least 49 years or over on 30 June 2014, the following caps apply. 

Income Year

Age of taxpayer

Amount of cap

2014/15

49 years or over on 30 June 2014

$35,000

2013/14

59 years or over on 30 June 2013

$35,000

 

Non-concessional contributions cap

These include personal contributions for which taxpayers do not claim an income tax deduction. 

Income Year

Amount of cap

2014/15

$180,000

2013/14

$150,000

 

It is important to note the ability to contribute three (3) lots of the above cap in the one year if you are under 65 years of age.

 

Superannuation guarantee 

The superannuation support employers are required to pay for their employees is increasing. 

Income Year

Rate

2014/15

9.50%

2013/14

9.50%

 

CGT cap

Tax payers can exclude non-concessional super contributions that arise from the Small business 15-year exemption or the Retirement exemption from the non-concessional contributions cap as per the table below. 

Income Year

Amount of CGT cap

2014/15

$1,355,000

2013/14

$1,315,000

Low rate cap

The application of the low rate threshold for super lump sum payments is capped.  The low rate cap amount is reduced by any amount previously applied to the low rate threshold. 

Income Year

Amount of cap

2014/15

$185,000

2013/14

$180,000

 

Minimum annual payments for super income streams

Once you commence a pension or annuity from superannuation, a minimum amount is required to be paid each year. 

There is no maximum amount other than the balance of your super account, unless it is a Transition to retirement pension, in which case the maximum amount is 10% of the account balance. 

The following table shows the minimum percentage factor for each age group. 

Age

Minimum % withdrawal

Under 65

4%

65-74

5%

75-79

6%

80-84

7%

85-89

9%

90-94

11%

95 or more

14%

 

Co-contribution

If your income is eligible for the co-contribution and you make personal non-deductible superannuation contribution, the government will make a co-contribution.  

Previously it was dollar for dollar.  For the 2013 and later income years, the government will contribute $0.50 for every $1 an eligible individual contributes into superannuation, up to the maximum co-contribution amount. 

The maximum co-contribution of $500 is reduced by 3.333 cents for each dollar an individual’s total income exceeds the lower income threshold of $34,488

Eligibility for the co-contribution cuts out completely at the higher income threshold of $49,488.

 

Employment termination payments

The amount up to the Employment termination payments (ETP) cap amount will be taxed at a concessional rate.  

The amount in excess of the ETP cap amount will be taxed at the top marginal rate. 

Income Year

Amount of cap

2014/15

$185,000

2013/14

$180,000

 

Genuine redundancy

The tax-free amounts for genuine redundancyandearly retirementpayments are 

Income Year

Base Amount

Service Amount*

2014/15

$9,514

$4,758

2013/14

$9,246

$4,624

* For each complete year of service

 

If you have any questions regarding these new thresholds and rates, please contact Ellingsen Partners.