The Australian Taxation Office has released key superannuation rates and thresholds that will apply for the 2014-15 income year. There are a number of changes which may benefit you.
A change worthy of note is the increase in contributions caps. The general concessional contributions cap is increased from $25,000 to $30,000 per annum for the 2014-15 income year. However, for those aged 49 or over on 30 June 2014, the concessional cap has been increased to $35,000.
This is an opportune time for you to review your contributions with the possibility of taking advantage of the increased concessional contributions cap in the 2015 financial year. You may simply want to contribute more for your retirement or explore the possibility of improving your overall tax efficiency.
The non-concessional contributions cap is increased from $150,000 to $180,000 per annum. Under the “bring forward” rule, you are now able to contribute up to $540,000 within a 3 year period. This will provide more flexibility for you to plan and save for your retirement.
All changes are included in the table below. If you have any questions in relation to the new thresholds and how you may benefit, please do not hesitate to contact our office to discuss.
- The Federal Government has introduced legislation which, if passed by the Senate, will retain the SG rate at 9.25% for the 2014-15 and 2015-16 income year.
- This is the maximum earnings level at which employers are required to pay compulsory SG. If an employee’s earnings level exceeds the maximum SG contributions base, the employer is not required to pay SG on the earnings above the threshold.
- This is the threshold above which the maximum government co-contribution amount of $500 begins to reduce.
- This is the threshold above which the government co-contribution will not be paid.