Importantly, the standard concessional contributions cap will increase from the current $25,000pa to $30,000pa for 2014/15.The increase reflects the re-commencement of normal indexation of this cap.
This increase also causes the non-concessional contributions cap to increase to $180,000pa (6 x $30,000) for 2014/15 and $540,000 (i.e. $180,000 x 3) when applying the additional 2 year 'bring forward' rule.
If a person is already in a bring forward period, or the bring forward is triggered in the 2013/14 financial year, the current $450,000 bring forward non-concessional contributions cap will continue to apply until the expiry of the person's bring forward period.
2014/15 Superannuation thresholds
|Threshold||Existing 2013/14||New 2014/15|
|Tax-free part of genuine redundancy and early retirement scheme payments (per payment)|
|Plus, for each completed year of service||$4,624||$4,758|
|Co-contribution1 (per annum)|
|Lower income threshold||$33,516||$34,488|
|Higher income threshold||$48,516||$49,488|
|Standard Concessional contributions cap (per annum)||$25,000||$30,000|
|Temporary (higher) concessional contributions cap2 (per annum) for people age 59 an over on 30 June 2013||$35,000|
|Temporary (higher) concessional contributions cap2 (per annum) for people age 49 and over on 30 June 2014||$35,000|
|Non-concessional contributions cap|
|Standard (per annum)||$150,000||$180,000|
|Bring forward (over 3 years)||$450,000||$540,000|
|Low rate cap amount
(Applies to the taxable component of taxed super fund benefits for members aged 55-59)
|Untaxed plan cap amount
(Applies to the taxable component of untaxed super fund benefits)
|Employment termination payment cap (per annum)||$180,000||$185,000|
|CGT cap amount (lifetime limit)||$1,315,000||$1,355,000|
|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%|
1 The maximum entitlement remains at $500 and applies where at least $1,000 non-concessional contributions have been made in the financial year and the person does not exceed the lower income threshold.
The Low income superannuation contribution (LISC) applicable to concessional contributions is expected to have been repealed by the Coalition Government with no application after 30 June 2013. However, this is not yet law.
2 The temporary higher cap is not indexed and will cease when the standard concessional contributions cap is indexed to $35,000.
The Government's new SuperStream legislation aims to improve efficiency.