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Superannuation rates and thresholds for 2015/16

Superannuation rates and thresholds for 2015/16

20 April 2015

The Australian Taxation Office (ATO) has announced key superannuation rates and thresholds to apply in respect of the 2015/16 financial year.

Concessional contributions caps

  • The concessional contributions cap for 2015/16 has remained the same as the 2014/15 year at $30,000.
  • The special concessional contributions cap for older people remains at $35,000, but will apply to anyone aged 49 or older on 1 July 2015. 

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

Remember that if you have more than one superannuation fund the concessional contributions made to all of your funds are added together and count towards the concessional contributions cap.

Non-concessional contributions cap

  • The non-concessional contributions cap has also remained the same at $180,000.

Non-concessional contributions include personal contributions for which you do not claim an income tax deduction.

Non-concessional bring-forward cap

  • The bring-forward non-concessional cap has remained the same at $540,000.

People aged less than 65 years on 1 July in a financial year may be able to make non-concessional contributions of up to three times their non-concessional contributions cap over a three year period - this is known as the “bring forward” rule.

The bring-forward cap is three times the non-concessional contributions cap of the first year.

If you brought forward your contributions in 2015/16, it would be 3 x $180,000 = $540,000.

The Super Guarantee (SG) rate

The SG rate will remain at 9.5%.

The next rate rise isn’t due until 1 July 2021 where it will increase to 10% as part of the Government’s initiative to increase the SG rate to 12% by 2025.

Other super thresholds

  • Capital Gains Small Business contributions cap – increased to $1,395,000 from $1,355,000
  • Low rate tax cap – increased to $195,000 from $185,000. For people aged less than 60 years old who are retired and wish to draw a lump sum from super, this is the amount that can be withdrawn at 0% tax; amounts thereafter are taxed at 15% plus the Medicare levy.
  • Maximum SG contributions base – increased to $50,810 from $49,430 per quarter.
  • Government Co-Contribution lower threshold – increased to $35,454, up from $34,488. This is the threshold above which the maximum co-contribution amount of $500 begins to taper.
  • Government Co-Contribution higher threshold – increased to $50,810, up from $49,488. This is the threshold above which the co-contribution will not be paid.

The full list of thresholds is available from the ATO website here

If you are considering changes to your contributions or retirement planning strategy please speak with your local Boyce accountant or Elizabeth Timmins or Julie Schofield in the Boyce Super Team in Cooma on 02 6452 3344.

Source: Australian Tax Officewww.ato.gov.au/Rates/Key-superannuation-rates-and-thresholds/

 

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