Superannuation Threshold 2018-2019 09 Oct 2018

Blog / SMSF

The following thresholds relate to 2018-2019.
 

Super Contributions

Superannuation guarantee maximum contribution base

$52,760 per quarter
($211,040 pa)

Employer contribution rate

 9.5%

Concessional contributions cap (no additional contribution for people over age 49).

 $25,000

Non-concessional contribution cap
Total super balance at 30 June 2018 is below $1.6M.
Total super balance at 30 June 2018 is $1.6M or more
 

 $100,000
     Nil

Downsizer contributions $300,000
CGT lifetime cap

$1,480,000**

  ** The CGT cap is a lifetime limit and is indexed annually and rounded down to the nearest $5,000.
 

Standard bring forward rule for non-concessional contributions

Total superannuation balance
at 30 June 2018

 
Non-concessional contributions cap including bring-forward
2018-2019
Less than $1.4 million $300,000
At least $1.4 million but less than $1.5 million $200,000
At least $1.5 million but less than $1.6 million $100,000
$1.6 million or more Nil

 

The bring-forward rule is only available for clients under age 65 at any time in the financial year, who have not triggered the
bring-forward rule in the previous two financial years.
 

Transitional bring forward rule

Year in which bring forward rule is triggered Transitional non-concessional contributions cap*
2018-2019
2015-16 Transitional period has expired, use standard bring forward rule in 2018=-19
2016-17 $380,000 less NCCs made since 1 July 2016

*  Only available for clients who triggered the bring-forward rule in 2016-17.  Total superannuation balance must be less
than $1.6 million on 30 June 2018.


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.

From 1st July 2018 the high income threshold is $250,000.

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
$37,697 or less  Nil  $500
More than $37,697 but less than $52,697  (TI - $37,697) x 0.03333  $500 - RI
$52,697 or more $500 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 Super Tax Offset

Adjusted taxable income       Contribution amount
$37,000 or less 15% of concessional contributions (subject to a maximum LISTO of $500)
$37,001 or more Nil

 

Super Lump Sum Benefits

Low rate cap $205,000
Untaxed plan cap $1,480 million

 

Minimum and maximum percentage factors

These percentage factors apply to exempt current pension income (ECPI) and transition to retirement income stream (TRIS) .

Minimum Factors

As per establishment account balance and in the subsequent years the balance at the 1st July.

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%

 
Maximum Factors

 

ECPI - there is no maximum pension.  You can draw pension up to 100% of the value.

TRIS - maximum pension is 10% of the account balance at establishment date and in the subsequent years the pension account balance at 1st July.

 

Taxation of Income Steams

Tax free component is not taxed.  Taxable component is taxed as follows:

  Taxable Component Tax Rate  
Age From taxed sources From untaxed sources
Age 60 or above Not assessable, not exempt income Taxed at marginal tax rates, with a 10% tax offset
At or above preservation age and under 60 Taxed at marginal tax rates and tax
offset of 15% is available
Taxed at marginal tax rates, with no tax offset
Under preservation age Taxed at marginal tax rates, with no tax
offset (Tax offset of 15% is available if a disability super benefit)
Taxed at marginal tax rates, with not tax offset


*on 1st July 2017, an individual on a TTR who has not met a condition of release won't satisfy as an income stream in retirement phase.


 

 

Tax Free part of genuine redundancy and early retirement scheme payments

First year For each completed base benefit year of service
$10,399 $5,200

 

Termination Payments

ETP cap amount $205,000
Whole-of-income cap amount $180,000

 

 

Superannuation Death Benefit

Super death benefits paid to a death benefits dependant

Age of deceased at time of death Type of death benefit Age of recipient Taxed element Untaxed element
Any age Lump sum Any age 0% NANE 0% NANE
Age 60 and above Income stream Any age 0% NANE MTR less 10% tax offset
Below age 60 Income stream Age 60 and above 0% NANE MTR less 10% tax offset
Below age 60 Income stream Below age 60 MTR less 15% tax offset MTR (no tax offset)


Superannuation Death Benefit

Super death benefits paid to a death benefits non-dependant

Age of deceased Type of death benefit Age of recipient Taxed element Untaxed element
Any Age Lump sum Any age Max 15% Max 30%
Any Age Income stream Any age Not permitted after 1 July 2007.  Death benefit income streams commenced prior to 1 July 2007 will be taxed in the same manner as if paid to a dependant. same rules applies as Taxed element

 

MTR is Marginal Tax Rate

NANE income is neither assessable income nor exempt income.  It is ignored when working out a persons taxable income and their tax losses.

For all non-zero tax rates, Medicare levy may also apply.  For all payments, the tax-free component is NANE.

These payment are not subject to tax.

 

 

 

 

 

 

For more information on this subject feel free to get in touch with us click here

To receive free updates on relevant information click here

To read more about our specialised service offers for SMSF please click here

 

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

 

 


Recent News Aged-Care Financial-Planning SMSF Special-Disability-Trusts Superannuation Threshold 2018-2019
SOLOMON FORMAN SMSF SPECIALIST ADVISOR SMSF SPECIALIST AUDITOR Forman Financial Services SOLOMON FORMAN CERTIFIED FINANCIAL PLANNERĀ® Forman Financial Services
 
© Forman Financial Services 2014. Design & Developed by maxmoment interactive