ATO Releases 2016/17 Superannuation Thresholds…But?


The thresholds for the 2016/17 year have recently been updated by the ATO. Each year a number of superannuation thresholds are changed to reflect movements in full-time Average Weekly Ordinary Time Earnings (AWOTE). Importantly, for 2016/17 the concessional and non-concessional contribution caps will remain unchanged. Oh but wait there is a caveat! SUBJECT TO NO BUGGERING ABOUT BY THE GOVERNMENT IN THE BUDGET!

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2016/17 Superannuation thresholds Threshold Existing 2015/16 New 2016/17
Standard Concessional contributions cap (per annum) No change $30,000 $30,000
Temporary (higher) concessional contributions cap1 (per annum) for 2016/17, for people age 49 and over on 30 June 2016 – No change $35,000 $35,000
Non-concessional contributions cap – No change

− Standard (per annum)

− Bring forward (over 3 years)

 

$180,000

$540,000

$180,000

$540,000

Co-contributions (per annum)

− Lower income threshold

− Higher income threshold

 

$35,454

$50,454

$36,021

$51,021

Superannuation Guarantee (SG) maximum contribution base (per quarter)

Note: Current 9.5% SG percentage until 30 June 2021

$50,810 $51,620
CGT cap amount (lifetime limit) $1,395,000 $1,415,000
Low rate cap amount – No change

(Applies to the taxable component of taxed super fund benefits for members aged from preservation age to 59)

$195,000 $195,000

 

Threshold (Continued) Existing 2015/16 New 2016/17
Untaxed plan cap amount

(Applies to the taxable component of untaxed super fund benefits)

$1,395,000 $1,415,000
Tax-free part of genuine redundancy and early retirement scheme payments (per payment)

− Base limit

− Plus, for each completed year of service

 

$9,780

$4,891

$9,936

$4,969

Employment termination payment cap (per annum) No change $195,000 $195,000
Minimum annual payments for super income streams No change
Under age 65 4% 4%
Age 65 – 74 5% 5%
Age 75 – 79 6% 6%
Age 80 – 84 7% 7%
Age 85 – 89 9% 9%
Age 90 – 94 11% 11%
Age 95+ 14% 14%

 

Preservation age reminder
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

Confused? – Call me or email.

Are you looking for an advisor that will keep you up to date, access to quality professionals and provide guidance and tips like in this blog? Then why now contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

SMSF Specialist Adviser 

 Follow SMSFCoach on Twitter Liam Shorte on Linkedin NextGen Wealth on Facebook   

Verante Financial Planning

Tel: 02 98941844, Mobile: 0413 936 299

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5/15 Terminus St. Castle Hill NSW 2154

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This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

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