Are You Across the Changes to Superannuation Thresholds for 2017-18?

Are you across the changes to superannuation thresholds for 2017-18?

Although contributions caps will not be indexed for 2017-18, several other existing rates and thresholds have been increased to mirror changes in average weekly ordinary time earnings. Here’s a summary of the changes ahead:

 

THE CONCESSIONAL CONTRIBUTIONS CAP

• Reset to $25,000 for all taxpayers from 2017-18.
• Will be indexed in future years in multiples of $2,500 (down from $5,000).

 

THE NON-CONCESSIONAL CONTRIBUTIONS CAP:

• Is set at four times the concessional cap from 2017-18 at $100,000.
• Or at $300,000 under the bring-forward rule over 3 years, subject to transitional rules.
• Down from $540,000 up to 30 June 2017.

 

SUPER GUARANTEE:

• While this is frozen at 9.5% until 1 July 2021, the maximum contribution base will rise to $52,760 per quarter from 2017-18 (up from $51,620 for 2016-17).
• An employer is not required to provide the minimum super guarantee support for that part of an employee’s ordinary time earnings above the quarterly maximum contribution base (i.e. $52,760 for 2017-18).

 

GOVERNMENT CO-CONTRIBUTIONS:

• The lower income threshold is set to increase to $36,813 for 2017-18.
• The higher income threshold is $51,813.
• The co-contribution is available if you meet certain eligibility requirements.

 

SUPER BENEFITS

• The superannuation lump sum low rate cap and ETP cap amount are up from $195,000 to $200,000 for 2017-18.
• The untaxed plan cap will increase to $1.445m.
• The tax-free amount for a genuine redundancy will increase to $10,155 (base amount) plus $5,078 for each whole year of service.

At Quarles, we pride ourselves on being the super experts, so, to discuss how these changes affect you and your business, get in touch with us today.

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