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Superannuation

  • Complying superannuation fund tax rate (excluding non-arm’s length component) — 15%
  • Complying superannuation fund tax rate (non-arm’s length component) — 45%
  • Non-complying superannuation fund tax rate — 45%
  • Additional tax payable on concessional contributions of very high income earners* — 15%
  • Transfer balance cap (cap on the amount that can be transferred to the tax-free earnings retirement phase of superannuation) — $1,600,000
Superannuation contribution caps – year ending 30 June 2019
Type of superannuation contribution Contributions cap**
Concessional (deductible) $25,000
Non-concessional (non-deductible) $100,000^

* Applies to individuals whose combined income for surcharge purposes (excluding reportable superannuation contributions) and concessional taxed superannuation contributions exceed $250,000 for the income year.

** Amounts contributed in excess of the applicable cap may be subject to additional tax or included in the individual’s assessable income and taxed at their marginal tax rate. Individuals can choose to have up to 85 per cent of their excess concessional contributions for a financial year released from superannuation. Additionally, individuals can choose to withdraw excess non-concessional contributions plus associated earnings from superannuation. 

^The non-concessional contribution cap is nil if a member’s total superannuation balance (TSB) is greater than or equal to the general transfer balance cap ($1.6 million for 2018-19) at 30 June in the previous financial year. Individuals under 65 years of age can make non-concessional contributions of up to $300,000 over a three-year period (known as the ‘bringing forward rule’). Due to the reduction in the non-concessional contributions cap from $180,000 to $100,000 with effect from 1 July 2017, some individuals may have a different cap if the bringing forward rule was triggered in the 2016-17 income year.

Superannuation guarantee charge (SGC)

SGC is payable by employers if during 2018-19 they fail, in relation to each employee, to contribute 9.5% of the employee’s ordinary time earnings (base capped at $54,030 per quarter).

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