Financial Services with a Personal Touch

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ATO TAX RATES

“Financial Services with a Personal Touch”

ATO TAX RATES

CONCESSIONAL CONTRIBUTIONS CAP Concessional contributions include:

 employer contributions (including contributions made under a salary sacrifice arrangement)

 personal contributions claimed as a tax deduction by a self-employed person.

Concessional contributions cap for a given income year

Income year Amount of cap

2015-16 $30,000

2014-15 $30,000

2013–14 $25,000

2012–13 $25,000

2011–12 $25,000

Indexation of the general concessional contributions cap was paused at $25,000 up to and including the 2013–14 year. Normal indexation resumed for the 2014–15 year.

Concessional contributions cap for those aged 59 years or over

on 30 June 2013 and those aged 49 years or over on 30 June 2014

Income year

Cap for those aged 59 years or over on 30 June 2013

Cap for those aged 49 years or over on 30 June 2014

2015–16 $35,000 $35,000

2014–15 $35,000 $35,000

2013–14 $35,000 $25,000

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ATO TAX RATES

CONCESSIONAL (BEFORE-TAX) CONTRIBUTIONS

Concessional contributions are contributions made into your super fund before any tax is paid on them. They can include:

 compulsory super payments (SG) made by your employer

 Salary sacrifice contributions

 costs your employer pays on your behalf, such as super administration fees and insurance premiums

 some personal contributions, such as super payments you make if you’re self-employed – if an income tax deduction is allowed.

Once in your fund, these contributions are taxed at 15%.

CONTRIBUTION CAPS

For the 2013–14 financial year the general concessional contributions cap for those younger than 60 years old in the 2013– 14 financial year is $25,000.

However, if you turn 60 years or older in 2013–14 you can contribute up to $35,000 before you may have to pay extra tax. If you turn 50 years or older in 2014–15, you can contribute up to $35,000 before you may have to pay extra tax.

Accidentally gone over a cap?

From 1 July 2013, if you go over the cap, your excess concessional contributions will be included in your assessable income and taxed at your marginal tax rate (plus an interest charge).

To assist you in paying the additional tax bill, you may release up to 85% of the excess concessional contributions from your super fund. You can only release up to 85% because 15% contributions tax has already been paid by your super fund. Released contributions will no longer be counted as non-concessional contributions.

If your non-concessional contributions exceed the cap, you will receive an excess non-concessional assessment.

Non-concessional contributions cap for a given income year

Income year Amount of cap

2015-16 $180,000

2014-15 $180,000

2013–14 $150,000

2012–13 $150,000

2011–12 $150,000

2010–11 $150,000

2009–10 $150,000

2008–09 $150,000

2007–08 $150,000

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ATO TAX RATES

NON-CONCESSIONAL (AFTER-TAX) CONTRIBUTIONS

Non-concessional contributions are generally contributions you make into your super fund after tax has been paid on them. They include:

 personal contributions you make from your after-tax pay that you are not allowed to claim as an income tax deduction

 contributions your spouse makes to your fund on your behalf.

 In accordance with subsection 292-85(2) of the ITAA 1997, the non-concessional cap for an income year is a multiple of the concessional contributions cap. The new indexed amount is generally available each February.

 People aged under 65 years may be able to make non-concessional contributions of up to three times their non- concessional contributions cap over a three-year period. This is known as the ‘bring-forward’ option.

 The bring-forward cap is three times the non-concessional contributions cap of the first year. If you brought forward your contributions in 2007–08, it would be 3 x $150,000 = $450,000.

In 2014-15 the non-concessional contributions cap will increase to $180,000. (Bring forward is $540,000)

ATO SGC CONTRIBUTION RATES 2014-2015 & 2015-2016

 Super guarantee charge percentage (%)

Period Super guarantee rate (charge percentage)

1 July 2002 – 30 June 2013 9%

1 July 2013 – 30 June 2014 9.25%

1 July 2014 – 30 June 2015 9.5

1 July 2015 – 30 June 2016 9.5

1 July 2016 – 30 June 2017 9.5

1 July 2017 – 30 June 2018 9.5

1 July 2018 – 30 June 2019 9.5

1 July 2019 – 30 June 2020 9.5

1 July 2020 – 30 June 2021 9.5

1 July 2021 – 30 June 2022 10

1 July 2022 – 30 June 2023 10.5

1 July 2023 – 30 June 2024 11

1 July 2024 – 30 June 2025 11.5

1 July 2025 – 30 June 2026 and onwards 12

 If you need percentages for years prior to 2002–03, refer to former sections 20 and 21 of the Superannuation Guarantee (Administration) Act 1992, available from the Legal DatabaseExternal Link.

 Your contributions need to be made on at least a quarterly basis.

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ATO TAX RATES

SGC Contribution quarters

Quarter Period

1 1 July – 30 September

2 1 October – 31 December

3 1 January – 31 March

4 1 April – 30 June

If you haven't met your obligations

If you haven't met your super obligations as an employer, you have to lodge a Superannuation guarantee charge statement – quarterly (NAT 9599) and pay a superannuation guarantee charge to the ATO. Additionally, your business might lose the tax deduction you would normally get for super contributions, because the super guarantee charge is not tax deductible and neither are most late payments. Fee charges and Taxes will apply.

GOV - CO CONTRIBUTION 2015-2016

Year Maximum entitlement Lower income threshold Higher income threshold

2014-15 $500 $35,454 $50,454

2014-15 $500 $34,488 $49,488

2013–14 $500 $33,516 $48,516

2012–13 $500 $31,920 $46,920

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ATO TAX RATES

Contributions made in the 2013–14 income year

If your personal super contribution is:

$1,000 $800 $500 $200

And your income is: Your super co-contribution will be:

$33,516 or less $500 $400 $250 $100

$36,516 $400 $400 $250 $100

$39,516 $300 $300 $250 $100

$42,516 $200 $200 $200 $100

$45,516 $100 $100 $100 $100

$48,516 or more $0 $0 $0 $0

LOW INCOME SUPERANNUATION CONTRIBUTION (LISC)

From 1 July 2012, the government provides a low income superannuation contribution (LISC) of up to $500 annually for eligible individuals on adjusted taxable incomes of up to $37,000.

The amount payable under this measure will be calculated by applying a 15 per cent matching rate to concessional contributions made by, or for individuals on adjusted taxable incomes of up to $37,000, with an annual maximum amount payable of $500 (not indexed). The amount will be paid into a superannuation account of the individual to directly boost their retirement savings. The payment of LISC has been maintained in respect of concessional contributions made up to and including 30 June 2017. Payment of LISC will cease in respect of concessional contributions made on or after 1 July 2017. While LISC will continue to be payable in respect of concessional contributions made up to and including the 2016-17 income year, determinations of LISC will cease at 30 June 2019.

Concessional superannuation contributions made from 1 July 2012 will be eligible for the LISC. The first payments were made in the 2013–14 income year.

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ATO TAX RATES

Individual income tax rates

Residents

These rates apply to individuals who are Australian residents for tax purposes.

See also:

 Residency – what you need to know Tax rates 2015–16

The following rates for 2015–16 apply from 1 July 2015.

Taxable income Tax on this income

0 – $18,200 Nil

$18,201 – $37,000 19c for each $1 over $18,200

$37,001 – $80,000 $3,572 plus 32.5c for each $1 over $37,000

$80,001 – $180,000 $17,547 plus 37c for each $1 over $80,000

$180,001 and over $54,547 plus 45c for each $1 over $180,000

The above rates do not include the:

 Medicare levy of 2%

 Temporary Budget Repair Levy; this levy is payable at a rate of 2% for taxable incomes over $180,000. See also:

 Medicare levy

 Temporary Budget Repair Levy