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.
Contributions
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) Cap increases 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.
Government co-contributions
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.
Further help:
If you have any questions regarding your personal circumstances, our experts are happy to assist. Please contact us on (07) 3023 4800 or at mail@marshpartners.com.au.
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GENERAL ADVICE WARNING: This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs. We suggest you obtain specific financial advice from a licensed financial advisor.
