Superannuation rates and thresholds for next financial year have been released. The main changes for 2015/16 are:

  • No indexation to concessional cap (CC) or non-concessional cap (NCC).

    • For the under 50s the CC is still $30,000, but If you’re turning 50 this year, then you can contribute $35,000 into super, if you can.

    • All excess CC’s taxed at marginal rates less 15% offset

  • The low-rate cap for super lump sums will increase to $195,000 (from $185,000).

  • The tax-free amounts for genuine redundancy will increase to $9,780 plus $4,891 for each complete year of service

  • The government co-contribution thresholds increase to $35,454 (for full contribution) and $50,454 (cut-off)

  • The super guarantee (SG) remains at 9.5% 

  • The maximum super contribution base will increase to $50,810 per quarter (from $49,430 a quarter). This is the equivalent of moving from an annual salary of $197,720 to $203,240.

  • The “lifetime CGT cap” amount will increase to $1.395 million, which applies to contributions that can be made to super by those small business people who have sold an active asset. 

If you turned 55 by 30th June, your preservation age was 55. But going forward, the preservation age starts to lift, from 55 to 60 (60 is the preservation age for everyone born after 1 July 1964).

Preservation age

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



With the new financial year upon us, you should be reviewing and making adjustments to your contribution plans.
Review your super arrangements in light of any new salary increase or bonus plan from your employer.
Salary sacrifice arrangements should be considered in making as close as possible to the maximum CC limit of $30,000 or $35,000.
To review and discuss your superannuation arrangements and opportunities, please contact your adviser at WLM.