Superannuation Rates and Thresholds

The following is a brief overview of key rates and thresholds that apply to superannuation.

Concessional contributions include:

  • employer contributions (including contributions made under a salary sacrifice arrangement)
  • personal contributions claimed as a tax deduction.

If you have more than one fund, all concessional contributions made to all of your funds are added together and counted towards your concessional contributions cap.

Excess concessional contributions are the amount of concessional contributions you make over your cap in a financial year. From 2013–14 onwards the excess contributions are included as taxable income and taxed at the marginal tax rate. Also, you are liable for an excess concessional contributions charge. Individuals who make contributions from 1 July 2021 that exceed their cap, will no longer be liable to pay the excess concessional contributions charge.

Income year
Date Your age at this date
Your concessional
contribution cap 
2022-23 N/A All ages $27,500
2021-22 N/A All ages
$27,500
2020-21 N/A
All ages
$25,000
2019-20 N/A
All ages
$25,000
2018-19 N/A
All ages
$25,000
2017-18 N/A
All ages
$25,000
2016-17 30 June 2016
<49
$30,000
2016-17 30 June 2016
49+
$35,000
2015-16 30 June 2016
<49
$30,000
2015-16 30 June 2015
49+
$35,000
2014-15 30 June 2014
<49
$30,000
2014-15 30 June 2014
49+
$35,000
2013-14 30 June 2013
<59
$25,000
2013-14 30 June 2013
59+
$35,000


For earlier years please refer to the ATO website.

Unused concessional cap carry forward

From 1 July 2018 if you have a total superannuation balance of less than $500,000 on 30 June of the previous financial year, you may be entitled to contribute more than the general concessional contributions cap and make additional concessional contributions for any unused amounts.

The first year you will be entitled to carry forward unused amounts is the 2019–20 financial year. Unused amounts are available for a maximum of five years, after which they will expire.

Description
2017-18
2018–19 2019–20 2020–21 2021–22
General contributions cap
$25,000
$25,000 $25,000 $25,000 $27,500
Total unused available cap
accrued
Not applicable $0 22,000 $44,000 $69,000
Maximum cap available $25,000 $25,000 $47,000 $25,000 96,500
Superannuation balance
30 June prior year
Not applicable $480,000 $490,000 $505,000 $490,000
Concessional contributions nil $3,000 $3,000 nil nil
Unused concessional cap
amount accrued in the relevant financial year
$0 $22,000 $22,000 $25,000 $27,500


General concessional contributions cap

From 1 July 2021 the general concessional contributions cap is $27,500 as a result of indexation in line with average weekly ordinary time earnings (AWOTE).

From 1 July 2017 to 30 June 2021 the general concessional contributions cap is $25,000. From the 2017–18 financial year, the general concessional contributions cap is not calculated based on age.

Higher concessional contributions cap for the 2013–14 and later financial years

The concessional contributions cap was temporarily increased to $35,000:

  • for the 2013–14 financial year if you were 59 years or over on 30 June 2013
  • from the 2014–15 to the 2016–17 financial year if you were 49 years or over on the last day of the previous financial year.

Non-concessional contributions include personal contributions for which you do not claim an income tax deduction.

If you have more than one fund, all non-concessional contributions made to all of your funds are added together and counted towards the non-concessional contributions cap.
 

Income year
Amount of cap
2022-23 $110,000*
2021-22
 $110,000*
2020-21
 $100,000*
2019-20
 $100,000*
 2018-19  $100,000*
 2017-18  $100,000*
 2016-17  $180,000
 2015-16  $180,000
2014-15 $180,000
2013-14 $150,000


For earlier years please refer to the ATO website.

* Annual Cap

The non-concessional cap for an income year is a multiple of the concessional contributions cap.

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.

Note: 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.

Excess non-concessional contributions

For any excess contributions made after 1 July 2013 breaching the non-concessional cap, the Government will allow individuals to withdraw those excess contributions and associated earnings. If an individual chooses this option, no excess contributions tax will be payable and any associated earnings will be taxed at the individual’s marginal tax rate. For further information, please contact the ATO.

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.

Year General Transfer Balance Cap
2022-23 $1,700,000
2021-22 $1,700,000
2020-21 $1,600,000
2019-20 $1,600,000
2018-19 $1,600,000
2017-18 $1,600,000


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

Year Maximum entitlement
Lower income threshold
Higher income threshold
1 July 2022 to 30 June 2023  $500 $42,016 $57,016

1 July 2021 to 30 June 2022   

$500

$41,112

$56,112

1 July 2020 to 30 June 2021

$500

$39,837

$54,837

1 July 2019 to 30 June 2020

$500

$38,564

$53,564

1 July 2018 to 30 June 2019

$500

$37,697

$52,697

1 July 2017 to 30 June 2018

$500

$36,813

$51,813

1 July 2016 to 30 June 2017

$500

$36,021

$51,021

1 July 2015 to 30 June 2016

$500

$35,454

$50,454

1 July 2014 to 30 June 2015

$500

$34,488

$49,488

1 July 2013 to 30 June 2014

$500

$33,516

$48,516

1 July 2012 to 30 June 2013

$500

$31,920

$46,920


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:

Period Superannuation guarantee rate
1 July 2003 – 30 June 2013 9.0%
1 July 2013 - 30 June 2014 9.25%
1 July 2014 - 30 June 2021 9.5%
1 July 2021 - 30 June 2022 10.0%
1 July 2022 - 30 June 2023 10.5%
1 July 2023 - 30 June 2024 11.0%
1 July 2024 - 30 June 2025 11.5%
1 July 2025 and onwards 12.0%

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.

Income year Per quarter
2022-23 $60,220
2021-22 $58,920
2020-21 $57,090
2019-20 $55,270
2018-19 $54,030
2017-18 $52,760
2016-17 $51,620
2015-16 $50,810
2014-15 $49,430
2013-14 $48,040
2012-13 $45,750
2011-12 $43,820
2010-11 $42,220
2009-10 $40,170
2008-09 $38,180
2007-08 $36,470

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.

Income year Amount of cap
2022-23 $230,000
2021-22 $225,000
2020-21 $215,000
2019-20 $210,000
2018-19 $205,000
2017-18 $200,000
2016-17 $195,000
2015-16 $195,000
2014-15 $185,000
2013-14 $180,000

 

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.

Income year Amount of cap
2022-23 $1.650 million
2021-22 $1.615 million
2020-21 $1.565 million
2019-20 $1.515 million
2018-19 $1.480 million
2017-18 $1.445 million
2016-17 $1.415 million
2015-16 $1.395 million
2014-15 $1.355 million
2013-14 $1.315 million

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%.

Income year Threshold amount
2017-18 onwards $250,000
2012-13 to 2016-17 $300,000

 

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.

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

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.

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 or the 2020–21 financial year, 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

Age 2008–09 to 2010–11 
income years (inclusive)
2011–12 to 2012–13 
income years (inclusive)
2013–14 to 2018–19 
income years (inclusive)
2019–20 to 2022–23
income years (inclusive)
Under 65 2% 3% 4%  2%
65-74 2.5% 3.75% 5% 2.5%
75-79 3% 4.5% 6% 3%
80-84 3.5% 5.25% 7% 3.5%
85-89 4.5% 6.75% 9% 4.5%
90-94 5.5% 8.25% 11% 5.5%
95 or more 7% 10.5% 14% 7%


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.