Super Rates & Thresholds

FUND DETAILS     USI: NES0100AU     ABN: 72 229 227 691     ADDITIONAL INFORMATION

This page contains a summary of super rates and thresholds that may apply to you, including relevant tax and super guarantee (SG) contribution rates, contribution caps or other tax information relating to your super. For more details, please refer to the Australian Taxation Office ATO website (ato.gov.au/super).

Super Guarantee (SG) Rate

The SG rate is the compulsory amount employers must contribute to employees.

Financial year

SG rate

July 2014-June 2021

9.50%

2021-22

10.00%

2022-23

10.50%

2023-24

11.00%

2024-25

11.50%

From 1 July 2025

12.00%

Employers must pay the SG contribution if employees are: 

  • 18 years old or over, and
  • receive $450 or more (before tax) in salary or wages in a calendar month. This $450 threshold will not apply from 1 July 2022.

Individuals who are under 18 years old, must also work more than 30 hours per week to qualify for the SG contribution.

There is no age limit for employees to be eligible for SG contributions.

Maximum super contribution base

Employers are only required to pay SG contributions up to the maximum super contribution base. If an individual earns above the base, employers are not required to pay SG contributions on earnings over the base. The maximum super contribution base is indexed each year in line with average weekly ordinary time earnings (AWOTE).

Financial year

Maximum contribution base per quarter (quarterly earnings)

2022-23

$60,220

2021-22

$58,920

2020-21

$57,090

2019-20

$55,270

2018-19

$54,030

2017-18

$52,760

Government co-contribution

The co-contribution is a government measure to boost super savings. You may be eligible for the co-contribution if:

  • you make an eligible non-concessional contribution during the financial year
  • your total income (which includes reportable employer super contributions and reportable fringe benefits) is less than the higher income threshold for that financial year (see table below)
  • 10% or more of your total income is from eligible employment-related activities, running a business or a combination of both
  • you are less than 71 years old at the end of the financial year
  • you do not hold an eligible temporary resident visa at any time during the financial year (unless you are a New Zealand citizen or it was a prescribed visa)
  • you lodge an income tax return for the relevant financial year. (any member aged 67 or over must satisfy the work test).
  • your total superannuation balance (which includes super and pension interests) is below $1.7 million at 30 June of the previous financial year.

To qualify you must not have contributed an amount more than your non-concessional contributions cap for the relevant financial year.

The maximum super co-contribution depends on your income. If income is equal to or less than the lower income threshold ($41,112 for the 2021-2022 financial year) you may be eligible for a co-contribution of up to the full ‘maximum entitlement’. For every dollar you earn above the lower income threshold, the maximum entitlement is reduced by 3.333 cents. The co-contribution is not payable if the income is at or above the higher income threshold and a minimum payment of $20 applies with payments being rounded to the nearest five cent multiple.

The amount of super co-contribution depends on the amount of non-concessional (after-tax) contributions you put into your super and the ‘matching rate’ for the financial year in which the contribution was made.

Financial year

Matching rate

2022-23

50%

2021-22

50%

2020-21

50%

2019-20

50%

2018-19

50%

2017-18

50%

Financial year

Maximum entitlement

2022-23

$500

2021-22

$500

2020-21

$500

2019-20

$500

2018-19

$500

2017-18

$500

Financial year

Lower income threshold

2022-23

$42,016

2021-22

$41,112

2020-21

$39,837

2019-20

$38,564

2018-19

$37,697

2017-18

$36,813

Financial year

Higher income threshold

2022-23

$57,016

2021-22

$56,112

2020-21

$54,837

2019-20

$53,564

2018-19

$52,697

2017-18

$51,813

Preservation

You can access your super when you retire or meet certain conditions of release. Generally, super benefits must be preserved, meaning your super money cannot be accessed until you:

  • reach age 65, or stop working with an employer on or after age 60
  • retire permanently from the workforce after reaching your preservation age as shown in the table below
  • reach your preservation age and receive super benefits as a non-commutable income stream (that is, an income stream that generally cannot be converted to a lump sum after it starts such as a transition to retirement income stream)
  • die or become totally and permanently disabled
  • are diagnosed with a terminal illness with a life expectancy of less than 24 months
  • leave or change your employer and your preserved benefit is less than $200
  • are a temporary resident permanently leaving Australia
  • satisfy the relevant Australian regulatory body that your money should be released for compassionate reasons
  • satisfy the conditions for severe financial hardship.

Date of birth

Preservation age

Before 1 July 1960

55

1 July 1960 – 30 June 1961

56

1 July 1961 – 30 June 1962

57

1 July 1962 – 30 June 1963

58

1 July 1963 – 30 June 1964

59

From 1 July 1964

60

Concessional (before-tax) contribution caps

Concessional contributions are contributions made to your super account from your earnings before tax is deducted. These include the SG contribution, a personal contribution claimed as a tax deduction, any other employer contributions above the SG, and voluntary salary sacrifice contributions. There is a limit on the amount of contributions that will be given a tax concession – this is called the concessional contribution cap. If you have more than one super fund, all concessional contributions made to all your funds in the particular financial year are added together and counted towards the cap.

Financial year

General cap

2022-23

$27,500

2021-22

$27,500

2020-21

$25,000

2019-20

$25,000

2018-19

$25,000

2017-18

$25,000

The concessional contributions cap (the general cap as shown in the table above) is indexed annually in line with average weekly ordinary time earnings (AWOTE). Indexation does not increase the cap in some years as increases are rounded down to the nearest multiple of $2,500.

Unused concessional contributions cap carry forward

From 1 July 2018, any unused portion of the concessional cap can be used to add contributions above the cap in subsequent years, on a rolling basis for a period of up to 5 years (2019-20 is the first financial year that unused concessional contributions can be accessed). To access this provision individuals must have a total superannuation balance of less than $500,000 on 30 June of the previous financial year.

Excess concessional contribution

If you go over the concessional contribution cap, you will pay extra tax on the excess contributions (at your marginal tax rate, less 15% tax already paid). If you leave the excess concessional contributions in super, the excess amount will be counted as non-concessional contributions. You also have the option of withdrawing the excess amount out of your account. The ATO will send you information on your options when a breach of this cap occurs.

An Excess Concessional Contribution (ECC) charge applies to contributions that exceed the concessional contribution cap from 2013-14 to 2020-21. The ECC charge has been removed from 1 July 2021.

Non-concessional (after-tax) contribution caps

Non-concessional contributions (NCC) are generally the after-tax contributions you make to a super fund. They include personal contributions you make from your after-tax pay, spouse contributions and any concessional contribution that exceeds the concessional contributions cap. If you have more than one super fund, all non-concessional contributions made to all your funds are added together and counted towards the cap.

Financial year

Cap

2022-23

$110,000

2021-22

$110,000

2017-18 to 2020-21

$100,000

From 1 July 2017, your non-concessional cap is nil for a financial year if, at the end of the previous financial year, you have a total superannuation balance greater than or equal to the general transfer balance cap. In this case, if you make non-concessional contributions in that year, they will be excess non-concessional contributions.

The total superannuation balance cap is $1.6 million between 1 July 2017 and 30 June 2021 and has increased to $1.7 million from 1 July 2021.

From the 2020-21 financial year if you are under 67 years old (for prior years the age restriction was 65), you may be able to make non-concessional contributions of up to three times the annual non-concessional contributions cap in a single year. If eligible, when you make contributions greater than the annual cap, you automatically gain access to future year caps. This is known as the ‘bring-forward’ option.

From 1 July 2017 your total superannuation balance at the end of the previous financial year will determine:

  • the non-concessional contributions cap you can bring forward and
  • whether you have a two-year or three-year bring-forward period.

If you enter a bring forward arrangement in either the 2012–13 or 2013–14 financial year you will have a $450,000 cap over three years; however in the 2014–15 financial year, your bring forward cap is $540,000.

From 1 July 2017 the bring forward amount and period depends on your total superannuation balance on the day before the financial year contributions that trigger the bring forward.

Transitional period transitional arrangements apply if you triggered a bring forward in either the 2015–16 or 2016–17 financial years. If you have triggered a bring forward before 1 July 2017 and you have not fully utilised your bring-forward cap before 1 July 2017, your cap was reassessed on 1 July 2017 to reflect your new annual cap.

During the transitional periods, contributions made prior to 1 July 2017 will affect your total non-concessional contributions capacity over the following two years.

Transfer balance cap

The transfer balance cap applies from 1 July 2017. It is a limit on the total amount of superannuation that can be transferred into the retirement phase. All your super account balances (regardless of how many you have) will be included to calculate this amount.
You can make transfers into the retirement phase if you remain below the transfer balance cap.

Financial year

Transfer Balance Cap

2021-22 to 2022-23

$1,700,000

2017-18 to 2020-21

$1,600,000

Minimum & maximum annual payments for income streams (NESS Pension)

Minimum annual payments

Once your NESS Pension commences a minimum income amount is required to be paid to you each financial year. The following table shows the minimum percentage factor applicable to NESS Pension for each age group.

Age

2013–14 to 2018–19 financial years (inclusive)

Under 65

4%

65-74

5%

75-79

6%

80-84

7%

85-89

9%

90-94

11%

95 or more

14%

Age

2019–20 to 2021–23 financial years (inclusive)

Under 65

2%

65-74

2.5%

75-79

3%

80-84

3.5%

85-89

4.5%

90-94

5.5%

95 or more

7%

Maximum annual payments

A maximum of 10% of the account balance at the start of the financial year or the start of the income stream applies to transition to retirement pensions.

There is no maximum for account-based pensions.

Tax

Generally, tax in super is applied to:

  • contributions (when contributions are made into your super account)
  • earnings (on the investments in super)
  • withdrawals.

Tax File Number (TFN)

Super funds are authorised to collect, use and disclose your tax file number.

Your employer must provide your super fund your TFN if they have it.

The trustee of your super fund may disclose your TFN to another super fund when your benefits are being transferred unless you request the trustee of your super fund in writing that your TFN not be disclosed to any other super fund.

Declining to quote your TFN to your super fund is not an offence. However, giving your TFN to your super fund will have the following advantages:

  • your super fund will be able to accept all permitted types of contributions to your account(s);
  • other than the tax that may ordinarily apply, you will not pay more tax than you need to – this affects both contributions to your super and benefit payments when you start drawing down your super benefits; and
  • it will make it much easier to find different super accounts in your name so that you receive all your super benefits when you retire.

If you choose not to supply your TFN, your concessional contributions will be taxed at 45% plus Medicare Levy of 2%. It also means that we can’t accept non-concessional contributions.

Tax on contributions

Concessional (before-tax) contributions are taxed in the fund at a concessional tax rate of 15%.

For those with an income (including super contributions) of more than $250,000 per annum, contributions tax will effectively rise from 15% to 30% on some or all their super contributions.

Any concessional contributions above the concessional contribution cap will be subject to additional tax.

A notice of excess concessional contributions determination will be provided by the ATO, requiring you to pay the additional tax. You will have the option of either making a withdrawal from your super account to meet this payment or paying it directly to the ATO.

For 2021-22, those with adjustable taxable income under $37,000 will receive a low-income superannuation tax offset (LISTO). The LISTO payment is equal to 15% of total concessional (before-tax) contributions for a financial year, capped at $500 per year.

Non-concessional (after-tax) contributions are generally not taxed in the fund. However, any non-concessional contributions above the cap which are left in super, will be taxed at the rate of 47% (45% plus 2% Medicare levy). You can elect to withdraw the excess contribution amount from your super account to avoid paying the excess contribution tax.

Tax on earnings

Investment earnings from your super fund are taxed at a rate of up to 15%. This tax is reflected in the unit price for each investment option.

Investment earnings from your NESS Pension account-based pension are tax free (up to your transfer balance cap).

Investment earnings applicable to Transition to Retirement accounts are subject to a tax rate of 15%.

Tax on withdrawals

Generally, if you take any part of your super benefit after age 60, no tax is payable.

Prior to age 60 some tax may be payable and will be deducted from your super benefit by the fund. The tax deducted depends on the components within your account. Superannuation accounts are divided into two components for tax purposes, a tax-free component and a taxable component. The tax-free component will always be tax-free, the taxable component may attract tax depending upon your age.

The table below shows how the different components of a super benefit are taxed.

Tax on lump sum super payments

Age at date of payment or type of payment

Tax free component

Less than $200

Tax free

Age 60 and over

Tax free

From preservation age to 60

Tax free

Under preservation age

Tax free

Terminally ill

Tax-free

Death Benefits – paid to a beneficiary who is a dependant for tax purposes

Tax free

Death Benefits – paid to a beneficiary who is a non-dependant for tax purposes

Tax free

Age at date of payment or type of payment

Taxable Component

Less than $200

Tax free

Age 60 and over

Tax free

From preservation age to 60

  • Tax free - up to the low rate cap amount
  • Taxed at 15% plus Medicare Levy over the low rate cap amount (see table below for the low rate cap amounts)

Under preservation age

Taxed at 20% plus Medicare Levy

Terminally ill

Tax-free

Death Benefits – paid to a beneficiary who is a dependant for tax purposes

Tax free

Death Benefits – paid to a beneficiary who is a non-dependant for tax purposes

Taxed at 15% plus Medicare Levy

NOTE:

If you are receiving a payment due to Total and Permanent Disability the above age-based tax rates apply, however the fund will complete a calculation to increase your tax-free component.

Death benefits may include an untaxed component, which is taxed at 30% plus Medicare Levy when paid to a non-dependant for tax purposes.

Tax on account based and transition to retirement income payments

The Fund will deduct tax in a similar way to an employer and issue a Pay As You Go (PAYG) summary after 30 June each year, which forms part of your tax return.

Example

If you purchase your NESS Pension on 30 June 2021 with $100,000 and 80% is a taxable component and 20% is a tax-free component, then PAYG tax will apply to 80% of your pension payment. If you draw a pension of $10,000 in the financial year, $8,000 would be taxable. That tax, combined with any other income tax payable for the financial year, would be reduced by an offset of $1,200 ($8,000 x 15%).

Pension payments

Age at date of payment

Tax on Tax free component

Age 60 and over

Tax free

From preservation age and under the age of 60

Tax free

Under preservation age

Tax free

Age at date of payment

Tax on Taxable Component

Age 60 and over

Tax free

From preservation age and under the age of 60

Your marginal tax rate less 15% tax offset

Under preservation age

Your marginal tax rate

Pension benefits upon death if paid as a pension to your beneficiary

Age at date of payment

Tax on Tax free component

Either you or the recipient are aged 60 or over when you die

Tax free

Both you and the recipient are aged under 60 when you die

Tax free

Age at date of payment

Tax on Taxable Component

Either you or the recipient are aged 60 or over when you die

Tax free

Both you and the recipient are aged under 60 when you die

Taxed at the recipients’ marginal tax rates less 15% tax offset

Tax on lump sum withdrawals (commutations)

If you’re aged 60 or over, there is no tax payable on your benefit.

If you’re under age 60, there are different tax rates for lump sum payments depending on your age as shown below.

The tax-free portion of a commutation is not taxed. Members cannot select to commute only a tax-free component: they will always be paid in the proportion established on joining. Any taxable component of a commutation for members under age 60 will be taxed at the concessional tax rate applicable to their age plus the Medicare levy.

Age at date of payment or type of payment

Tax on Tax free component

Age 60 and over

Tax free

From preservation age to 60

Tax free

Age at date of payment or type of payment

Tax on Taxable Component up to the low rate cap

Age 60 and over

Tax free

From preservation age to 60

Tax free

Age at date of payment or type of payment

Tax on Taxable Component above the low rate cap

Age 60 and over

Tax free

From preservation age to 60

Your marginal tax rate or 17% (15% plus 2% Medicare levy whichever is lower)

Low rate cap

The low rate cap amount is the limit set on the amount of taxable components (taxed and untaxed elements) of a super lump sum that can receive a lower (or nil) rate of tax. It applies to members that have reached their preservation age but are below 60 years.

It is a lifetime cap which is reduced by any amount previously applied to the low rate threshold. If you’re under

The low rate cap amount is indexed in line with AWOTE, in increments of $5,000 (rounded down). The new indexed amount is generally available each February.

The low rate caps are shown in the table below.

FINANCIAL YEAR

AMOUNT OF CAP

2022–23

$230,000

2021–22

$225,000

2020–21

$215,000

2019–20

$210,000

2018–19

$205,000

Tax on death benefits

The tax on a death benefit depends on:

  • whether you were a dependant of the deceased under taxation law
  • whether it is paid as a lump sum or income stream
  • whether the super is tax-free or taxable
  • your age and the age of the deceased person when they died (for income streams / pension)

The two tables below provides a guide on tax for a dependant of the deceased and an individual who is not a dependant of the deceased.

Table 1: Super death benefits paid to dependants (as defined for tax purposes)

Age of deceased

Super death benefit

Any age

Lump sum

Aged 60 and above

Income stream

Below age 60

Income stream

Below age 60

Income stream

Age of deceased

Age of recipient

Any age

Any age

Aged 60 and above

Any age

Below age 60

Above age 60

Below age 60

Below age 60

Age of deceased

Taxation

Any age

Tax-free component (not assessable and not exempt income).

Aged 60 and above

Taxable component – element taxed in the fund is tax-free (not assessable and not exempt income).

Below age 60

Taxable component – element taxed in the fund is tax-free (not assessable and not exempt income).

Below age 60

Taxable component – element taxed in the fund is assessable income and the person is entitled to a tax offset equal to 15% of that amount.

Table 2: Super death benefits paid to non-dependants (as defined for tax purposes)

Age of deceased

Super death benefit

Any age

Lump sum

Any age

Income stream

Age of deceased

Age of recipient

Any age

Any age

Any age

Any age

Age of deceased

Taxation

Any age

Taxable component – element taxed in the fund is assessable income but a tax offset ensures the rate of tax does not exceed 15%.

Any age

Not applicable.

Super income stream benefits that commenced before 1 July 2007 will be taxed as if received by a dependant.

Departing Australia superannuation payment (DASP)

The DASP tax rates that apply from payments made from 1 July 2017 are shown in the table below.

In December 2016, the Australian Government introduced a new DASP tax rate for working holiday makers (WHMs). This change is related to the new income tax rate for working holiday makers.

You are a WHM if you hold one of the following visas:

  • 417 (Working Holiday) visa
  • 462 (Work and Holiday) visa
  • associated bridging visa.

From 1 July 2017, the new DASP WHM tax rate of 65% applies to DASPs made to WHMs where it includes amounts attributable to superannuation contributions made under a WHM visa.

It doesn’t matter when you held a WHM visa. The DASP WHM tax rate will apply if you have ever held a 417 or 462 and associated bridging visas and the DASP includes amounts attributable to super contributions made while you held the relevant visa.

The DASP WHM tax rate applies to the entire payment, including any super you may have earned while working under a different visa.

Component

DASP ordinary tax rate (for non-WHM)

Tax free component

Nil

Taxed component – taxed element

35%

Taxable component - untaxed element

45%

Component

DASP WHM tax rate

Tax free component

Nil

Taxed component – taxed element

65%

Taxable component - untaxed element

45%

Downsizer Contribution

You may be able to make a downsizer contribution if you sell your home after 1 July 2018 and are aged 65 or over.

From 1 July 2022, the eligibility age will be lowered from 65 to 60.

The downsizer contribution can only be made from the sale of one home, subject to a cap which is the lesser of $300,000 or total sale proceeds (Couples may be able to contribute up to $600,000 combined).

There are some conditions you must meet to make a downsizer contribution, which includes:

  • there is a 10-year ownership requirement
  • the home must qualify for the Capital Gains Tax (CGT) main residence exemption (in part or whole)
  • you must be over age 65 at the time of contribution (the work test does not apply for the downsizer contribution). From 1 July 2022, the eligibility age will be lowered from 65 to 60
  • the contribution must generally be made within 90 days of receiving the proceeds of sale, which is usually the date of settlement.

First Home Super Saver (FHSS) Scheme

The first home super saver (FHSS) scheme allows you to save money for your first home inside your super fund. This will help first home buyers save faster with the concessional tax treatment of super.

Component

From 1/7/2018

Maximum voluntary contributions from any one financial year included in your eligible contributions to be released under the FHSS scheme

$15,000

Eligible contributions across all years

$30,000

Component

From 1/7/2022

Maximum voluntary contributions from any one financial year included in your eligible contributions to be released under the FHSS scheme

$15,000

Eligible contributions across all years

$50,000

For more details on the FHSS Scheme and eligibility conditions, visit the ATO website.

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