Super rates and thresholds for the 2018-2019 year
Have you spoken to your Marsh & Partners advisor about how super changes will affect your superannuation and retirement plans for the 2018-2019 year, or in future financial years?
Substantial changes to the superannuation rules took effect on 1 July 2017, and further changes have now taken effect from 1 July 2018.
A handy summary of the superannuation rules applying to the 2018-2019 year is set out below. Note that superannuation legislation is complex and subject to frequent changes. The below information is intended as a guide only and does not take the place of professional advice.
- Concessional Contributions Cap remains at $25,000.
- Concessional contributions are contributions that you or your employer make to your super fund with before-tax income or claim as a tax deduction.
- Non-Concessional Contributions Cap remains at $100,000.
- Non-concessional contributions are contributions made to your super from your after-tax income.
- Note that transitional arrangements may apply.
- If you have a superannuation account balance over $1.6 million you are not be eligible to make non-concessional contributions to super.
- Capital Gains Tax (CGT) Capincreases to $1,480,000.
- The CGT cap is the lifetime super contribution limit for proceeds from the disposal of eligible small business assets.
- Superannuation Guarantee (SG) remains at 9.50%, with the maximum super contribution base increasing to $54,030 per quarter.
- SG contributions are the compulsory contributions which most employees are eligible to receive and are paid by their employer to super on their behalf.
- Superannuation Co-Contribution maximum entitlement remains at $500.
- The lower income threshold (for full entitlement) increases to $37,697
- The higher income threshold (cut-off for eligibility) increases to $52,697
- 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.
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