Concessional and Non-concessional contribution caps:
The ATO have recently released the key Superannuation rates and thresholds for the 2015 Financial Year, from this the following changes have occurred:
- The concessional contribution cap has increased to $30,000; and
- Non-concessional contribution cap has increased to $180,000
- The concessional contribution cap will be temporarily increased to $35,000 for individuals aged 49 years or over on the 30 June 2014.
The ’bring-forward’ non-concessional contribution cap of $450,000 over a three year period continues to be available to individuals under 65 years of age. The bring-forward cap is three times the non-concessional contribution cap of the first year in which it is triggered. Therefore if the bring-forward rule is triggered after the 1st July 2014 the cap will increase to $540,000 for non-concessional contributions made over a three year period.
Government Co-contribution income thresholds:
The maximum entitlement for the Government Co-contribution for the 2015 Financial Year is $500. In order to be eligible to receive the co-contribution the following criteria needs to be satisfied:
- For each $1 contributed personally from your after tax income the Government will contribute $0.50 up to a maximum of $500. However there are income thresholds that need to be met in order to be eligible receive the Co-contribution, which are as follows:
- Lower income threshold - $34,488, i.e. if your Assessable Income is $34,488 or less you will be eligible to claim up to the maximum Co-contribution amount.
- Higher income threshold - $49,488, i.e. if your Assessable Income is $49,488 or more you will not be entitled to receive the Co-contribution for you superannuation contributions, however if you Assessable Income is between $34,488 and $49,488 your maximum co-contribution entitlement will be reduced.
Please note you Assessable Income is calculated based on the following items:
- All Income from employment and business
- Less: deductions from business income only
- Plus: total income from investments, partnership distributions and all other sources
All employers please note your Superannuation Guarantee obligations for your employees will increase to 9.50% from the 1st July 2014.
This article was written by Jason Smyth, a Senior Accountant. Jason has been with McKern and Associates for 6 years. Outside of work Jason is a keen golfer and mountain bike rider and enjoys spending time with his family, particularly perfecting his 2 year old daughters golf swing!