Getting Money Into Super

Getting money into super

Superannuation contribution caps (2010/11 financial year)

Contribution type / Annual cap / Tax on entry / Tax on excess
Concessional / Under age 50 / $25,0001 / 15% / 31.5%2
Concessional / Age50or over / $50,0003 / 15% / 31.5%2
Non-Concessional / N/A / $150,0004 / Nil / 46.5%

1 Indexed in increments of $5,000.
2 Excess concessional contributionsalso count toward the individuals non-concessional cap.
3 Available in each financial year up to and including the year ending 30 June 2012 where the individual is 50 or over at the end of the financial year.
4 Individuals aged less than 65 at any stage during the financial year in which the contribution is made can bring forward future entitlements to an amount equal to 3 times the non-concessional cap (ie $450,000 over 3 years for the 2010/11 financial year). But, if contributions are made after turning age 65, the member must actually have satisfied the 40/30 work test in the year contributions are made.

Superannuation co-contribution (2010/11 financial year)

Annual income1 / Maximum co-contribution available
$31,920 or less / $1,000
$31,920 - $61,920 / $1,000 - [(Annual income1 - $31,920) X 0.03333]
$61,920 and over / Nil

1 Assessable income, plus reportable fringe benefits, plus reportable employer superannuation contributions less deductible expenses from carrying on a business.

Lump sum super benefits

Taxation of lump sum benefits

Taxed superannuation benefits

Tax-free component / Taxable component
(element taxed)
Age 60 or over / Tax-free / Tax-free
Preservation age but underage 60 / Tax-free / $0 - $160,000: 0%
Over $160,000: 15%*
Under preservation age / Tax-free / 20%*

Untaxed superannuation benefits

Tax-free component / Taxable component
(element untaxed)
Age 60 or over / Tax-free / First $1,155,000: 15%*
Balance: 45%*
Preservation age but underage 60 / Tax-free / $0 - $160,000: 15%*
$160,000 - $1,155,000: 30%*
Balance: 45%*
Under preservation age / Tax-free / First$1,155,000: 30%* Balance: 45%*

* Add Medicare levy.

Income stream benefits

Taxation of income stream benefits

Taxed superannuation funds

Tax-free component / Taxable component (element taxed)
Age 60 or over / Tax-free / Tax-free
Preservation age but underage 60 / Tax-free / Marginal tax rates + 15% tax offset
Under preservation age / Tax-free / Marginal tax rates*

Untaxed superannuation funds

Tax-free component / Taxable component (element untaxed)
Age 60 or over / Tax-free / Marginal tax rates + 10% tax offset
Preservation age but underage 60 / Tax-free / Marginal tax rates
Under preservation age / Tax-free / Marginal tax rates

* Income stream commenced as a result of disability or death will receive a 15% tax offset.

Minimum payment factors - New flexible income streams

Age of pensioner / Min. Factor(%)
Under 65 / 4
65 - 74 / 5
75 - 79 / 6
80 - 84 / 7
85- 89 / 9
90 - 94 / 11
95 or more / 14

Minimum payment = Account balance x Minimumfactor (%)

Income streams commenced under Transition to Retirement condition of release are subject to a maximum income payment of 10%.

Death benefits

Lump sum death benefits

Paid to / Component / Maximum tax
Dependant / All / Tax-free
Non-dependant / Tax-free component
Taxable component (element taxed)
Taxable component (element untaxed) / Tax-free
15%*
30%*

* Add Medicare levy.

Income stream death benefits - Taxed superannuation fund

Age of deceased / Age of dependant1 / Tax status
60 or over / Any age / Tax-free
Under 60 / 60 or over / Tax-free
Under 60 / Under 602 / Tax-free component: Tax-free
Taxable component: Marginal tax rates + 15% tax offset

1 If the beneficiary is a child of the deceased, the income stream must be cashed as a tax free lump sum by the time the child turns 25 (unless permanently disabled).
2 When beneficiary reaches age 60, income stream becomes tax-free.

Income stream death benefits - Untaxed superannuation fund

Age of deceased / Age of dependant1 / Tax status
60 or over / Any age / Tax-free component: Tax-free
Taxable component: Marginal tax rates + 10% tax offset
Under 60 / 60 or over / Tax-free component: Tax-free
Taxable component: Marginal tax rates + 10% tax offset
Under 60 / Under 602 / Tax-free component: Tax-free
Taxable component: Marginal tax rates