Superannuation

SUPERANNUATION - Preservation Ages, Superannuation Guarantee, Salary Sacrificing, Salary Sacrificing Table and Termination Payments

 

Quick Facts:

Concessional Contributions

Concessional contributions are contributions from pre-tax income. This includes the contributions made by your employer and any salary sacrifice contributions. From 1 July 2007, Aged based Deduction Limits (ABDLs) have been removed. This means the amount you can claim as a deduction (where you are eligible) will no longer depend on your age.

Your contributions will be taxed at two different rates:

  • Up to $50,000 per year - 15% Tax
  • In excess of $50,000 per year - 45% Tax

If you are over 50, a transitional period will apply i.e. If you are aged 50 or over in 2007/08, you will be allowed to make contributions up to $100,000 each year for five years at the concessional tax rate of 15%.
Deductions will be available (from 1 July 2007) for contributions for employees until they reach age 75 (currently age 70).

Non-Concessional Contributions

Non-concessional contributions are personal contributions made from after-tax salary. There is a cap on non-concessional contributions across all Superannuation funds you hold.

The caps on non-concessional contributions are:

  • $150,000 per year; or
  • $450,000 over three years, for members under 65. For example, $300,000 in year one, $100,000 in year two and $50,000 in year three.