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 account balances will be included when working out this amount. It does not matter how many accounts you hold these balances in.

You can continue to make multiple transfers into the retirement phase as long as you remain below the cap.

You should refer to the ATO website, for further information on the Transfer Balance Cap including the special rules that apply for defined benefit income streams.

The Super Co-contribution is a government contribution to assist eligible individuals to save for their retirement. If you are eligible and make personal super contributions, the government will match your contribution with a Super Co-contribution up to certain limits. To receive a Co-contribution you must be earning less than the Higher Income Threshold. To receive the maximum Co-contribution you must be earning no more than the Lower Income Threshold. If you earn in between the two thresholds, you may be able to receive a limited Co-contribution.

Additional eligibility requirements were added from 1 July 2017 which includes:

• having a total superannuation balance of less than $1.6 million on 30 June of the year before the year the contributions are being made; and
• having not exceeded your non-concessional contributions cap in the relevant financial year.

There are other criteria you must meet to be eligible for the Super Co-contribution – for further information please visit the ATO website.

Co-contribution Income Thresholds

For earlier years please refer to the ATO website.

From 1 July 2017, the government introduced the low income super tax offset (LISTO) to assist low income earners to save for their retirement.

If you earn an adjusted taxable income up to $37,000 you may be eligible to receive a refund into your superannuation account of the tax paid on your eligible concessional superannuation contributions, up to a cap of $500.

You don't need to apply for LISTO. If you're eligible and your fund has your tax file number (TFN), we will pay it to your fund account automatically.

Since 1 July 2003, employers have been required to contribute a percentage of an employee’s earnings to a superannuation fund under the superannuation guarantee (SG) law. Recent changes to legislation saw the superannuation guarantee increase from 1 July 2013. In line with the repeal of the Minerals Resource Rent Tax, the proposed schedule for the increase is as follows:

The maximum super contribution base is used to determine the maximum limit on any individual employee's earnings base for each quarter of any financial year.

If an employee earns more than the amount shown below in a quarter for the relevant financial year, the employer is not obligated to pay superannuation guarantee contributions on the excess above that amount in that quarter.

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.

For earlier years please refer to the ATO website.

Under the CGT cap, you can during your lifetime, exclude non-concessional super contributions from your non-concessional contributions cap up to the CGT cap amount. The CGT cap applies to all excluded CGT contributions, whether they were made between 10 May 2006 and 30 June 2007 or after 30 June 2007.

The excess concessional contributions (ECC) charge is applied to the additional income tax liability arising from excess concessional contributions included in your income tax return. The intent of the ECC charge is to acknowledge that the tax is collected later than normal income tax. The charge is payable for the year a person makes excess concessional contributions and applies from the 2013–14 income year until the 2020-21 income year.

Individuals who make contributions on or after 1 July 2021 that exceed their cap, will no longer be liable to pay the ECC charge.

The ECC charge period is calculated from the start of the income year in which the excess concessional contributions were made and ends the day before the tax is due to be paid under your first income tax assessment for that year.

The formula for calculating the ECC charge uses a base interest rate for the day plus an uplift factor of 3%. The base interest rate is the monthly average yield of 90-day Bank Accepted Bills published by the Reserve Bank of Australia.

This compounding interest formula is applied against the base amount (the additional income tax liability) for each day of the ECC charge period.

The ECC charge rates are updated quarterly and are located on the ATO website.

An individual's income is added to certain super contributions and compared to the Division 293 threshold. Division 293 tax is payable on the excess over the threshold, or on the super contributions, whichever is less. The rate of Division 293 tax is 15%.

Division 293 tax is not payable on excess concessional contributions that have been taxed under Division 292 (or refunded under section 292-467).

Generally, you must reach preservation age before you can access your super. Use the following table to work out your preservation age.

Certain superannuation pensions and annuities are subject to rules that determine minimum and maximum amounts to be paid in a financial year.

A minimum amount must be paid each year for pensions or annuities you commence on or after 1 July 2007.

There is no maximum amount which must be paid unless it is a transition to retirement pension. A maximum amount of 10% of your account balance applies for transition to retirement pensions which are not in retirement phase.

The minimum payment amounts have been halved for certain pensions and annuities for the 2008–09, 2009–10 and 2010–11 years and reduced by 25% for the 2011–12 and 2012–13 years. The reductions in these years apply only to account-based pensions and annuities (allocated pensions and annuities and market-linked pensions and annuities).

Temporarily reducing superannuation minimum payment amounts

To assist retirees, the Government has reduced the minimum annual payment required for account-based pensions and annuities, allocated pensions and annuities and market-linked pensions and annuities by 50% for the 2019–20, 2020–21, 2021–22 and 2022-23 financial years.

Superannuation and annuity providers calculate the minimum annual payment required as at 1 July each year, based on the account balance of the member or annuitant. The 50% reduction will apply to this calculated minimum annual payment only in those years when the government has approved such a reduction. Please note that there is no reduction in the current year.

Note: Pension payments for the 2019–20 year above the reduced minimum withdrawal rate, taken before 25 March 2020, cannot be re-categorised as a lump sum or commutation, even if a valid minute or election from the member was in place before the government announced reduction.

Superannuation pensions and annuities that have already commenced

For pensions and annuities that commence part-way during the 2019–20, 2020–21, 2021-22 or 2022-23 financial years, the 50% reduction applies to the minimum annual payment that is calculated proportionally on the account balance on commencement day.

Minimum percentage factor for certain pensions and annuities (indicative only) for each age group

Note: These withdrawal factors are indicative only. To determine the precise minimum annual payment (especially for market linked income streams), refer to the pro-rating, rounding and other rules in the Superannuation Industry (Supervision) Regulations 1994.

The information on this page has been sourced from the Australian Taxation Office.