I'm adding to my super
Lower limits on how much you can add
Before-tax (concessional contributions)
This includes employer and salary sacrifice contributions, as well as personal contributions you’ve claimed as a tax deduction.
15% tax (or 30% tax if your income and before-tax super payments reach $250k)
* From 1 July 2018, if your before-tax super payments are below $25,000, and you have less than $500,000 in super at the end of the financial year, you can carry forward any unused amounts in your before-tax contributions caps. Unused amounts carried forward expire after five years.
After-tax (non-concessional) contributions
This includes personal contributions you haven’t claimed as a tax deduction.
or $300k in any 3-year period if you're under 65*
*Once your total super balance (across all super accounts you hold including income streams) reaches $1.6 million, the tax rates on contributions increase and you cannot bring forward future after-tax (non-concessional) contribution caps. If you’re between 65 and 74 you need to meet the work test to make extra contributions.
Tax deductions for personal payments to super
From 1 July 2017, anyone under 75 may be able to claim a deduction for personal super payments. These are payments you make from your after-tax (take-home) pay or your before-tax income if you’re self employed.
Contributions you claim as a tax deduction are treated as before-tax contributions, so they’re taxed at 15% and contribute to your before-tax contributions cap (see above).
If you’re between 65 and 74 you need to have worked at least 40 hours within 30 consecutive days during the year to be eligible to claim a tax deduction for personal contributions.
Tip: See how you can find a little extra to put towards your super - keep in mind you need to apply within specific time limits, so get in touch to work out your options today.
My partner or I earn less than $40,000
Continuing support for low-income earners
If you earn less than $37,000 a year, you can still get a refund of up to $500 a year to offset the contribution tax paid on your super. The money will go back into your super account.
Tip: Boosting your super can be one of the most tax-effective ways to save for your retirement. See how tax on super differs to other long term investments.
Extending the spouse tax offset
From 1 July 2017, you could be eligible for a tax offset of up to $540 if you add to your spouse's super when they're earning less than $40,000 a year - up from the current income limit of $13,800 a year.
To qualify, your spouse needs to:
- be under 65, or
- have worked at least 40 hours within 30 consecutive days during the year, if they're aged between 65 and 69.
Alongside this, your spouse must not have exceeded their after-tax (non-concessional) contributions cap and their total super balance must be less than $1.6 million for the 2017/18 financial year.
Tip: The tax offset goes both ways, if your spouse adds to your super. Learn more about the ways you can contribute, or give us a call to work out your best approach.
I’m retired or planning to retire soon
New tax on transition to retirement earnings
From 1 July 2017, earnings on income stream accounts set up under the Transition to Retirement option (TTR) will be taxed at 15%, in line with super (accumulation) accounts.
As a result, we’ve introduced five new investment options designed specifically for members of our Transition to Retirement option.
Even with this change, a TTR strategy can still be a great way to get your super working harder as you approach retirement. You must have reached your preservation age to start a TTR strategy – give us a call or see how you can plan for future now.
Tip: If you've retired recently – let us know! Otherwise, you could be taxed much more than you need to.
Retirement phase accounts capped at $1.6 million
From 1 July 2017, the Government is limiting the amount of super you can transfer to income stream accounts like our Fully Retired option. This is called your transfer balance cap and is a lifetime limit.
You’ll need to keep track of whether the value of your income streams, pensions and annuities exceed the lifetime transfer balance cap ($1.6 million for the 2017/18 financial year).
If you have more than this limit at 30 June 2017, you can hold up to $1.7 million without penalty in the first six months, but this must be reduced to $1.6 million by 31 December 2017. So, if you exceed the limit you should seek financial advice and take action immediately.
Tip: The cap applies to each person, which means a couple could have up to $1.6 million each in separate income stream accounts.