Superannuation Rate and Thresholds for 2017 – 2018
| Superannuation contributions are the compulsory contributions which most employees are eligible to receive, paid by their employer to super on their behalf. The Australian Taxation Office (ATO) has released the following key superannuation rates (including the superannuation guarantee rates (SG)) and thresholds for the 2017 – 2018 financial year. |
- Concessional Contributions Superannuation Cap – the cap will reduce to $25,000 for the 2017/18 year, due to superannuation measures introduced as part of the 2016 Federal Budget.
Concessional contributions are contributions that you or your employer make to your super with before-tax income or claim as a tax deduction. They are also referred to as employer or before-tax contributions.
- Non-concessional Contributions Cap – the cap for 2017/18 will reduce to $100,000. Additionally, anyone that has super worth over $1.6 million will not be eligible to make personal (non-concessional) contributions to super.
Non-concessional contributions are contributions you or your spouse make to your super from your after-tax income. They are also referred to as personal or after-tax voluntary contributions.
- Superannuation Guarantee (SG) – the SG rate remains at 9.50%, with the maximum super contribution base for 2017/18 increasing to $52,760 per quarter.
SG contributions are the compulsory contributions which most employees are eligible to receive, paid by their employer to super on their behalf.
- Superannuation Co-contribution – the maximum co-contribution entitlement for the 2017/18 year remains at $500. The lower income threshold (for full entitlement) increases to $36,813 and the higher income threshold (cut-off for eligibility) increases to $51,813.
The super co-contribution is designed to help lower-income earners save for their retirement by providing a government top-up where an eligible person makes a personal contribution to super.
- Superannuation Benefits Caps – the low rate cap amount for 2017/18 will increase to remains at $200,000.
The low rate cap is the amount that is able to be withdrawn tax-free over a lifetime for people that have reached their preservation age (see below), but are not yet 60 (when super withdrawals become entirely tax-free) – please note other eligibility criteria apply for making a withdrawal.
- Preservation Age – to meet preservation age during 2017/18, your date of birth must be 30 June 1961 or earlier.
Super is preserved for your retirement and has government-placed restrictions on when it can be accessed. Some conditions for accessing super rely on a person firstly reaching their preservation age.
- Capital Gains Tax (CGT) Cap Amount – the CGT cap amount for 2017/18 increases to $1,445,000.
The CGT cap is the lifetime super contribution limit for proceeds from the disposal of eligible small business assets.
