Super Facts & Figures

For SG rates prior to the current financial year, see here.

2. Maximum super contribution base

The current SG contribution rate is 10% of your earnings up to a certain limit. This limit is called the maximum super contribution base. If you earn above that limit for each quarter, your employer does not have to make contributions for the part of your earnings over the limit. The maximum super contribution base is indexed each year in line with average weekly ordinary time earnings (AWOTE).

For earlier rates, see here.

3. Government co-contribution

The co-contribution is a government measure to boost super savings.

You may be eligible for the co-contribution if:

• you make an eligible non-concessional contribution during the financial year
• your total income (which includes reportable employer super contributions and reportable fringe benefits) is less than the higher income threshold for that financial year (see table below)
• 10% or more of your total income is from eligible employment-related activities, running a business or a combination of both
• you are less than 71 years old at the end of the financial year
• you do not hold an eligible temporary resident visa at any time during the financial year (unless you are a New Zealand citizen or it was a prescribed visa)
• you lodge an income tax return for the relevant financial year. (any member aged 67 or over must satisfy the work test).
• your total superannuation balance (which includes super and pension interests) is below $1.7 million at 30 June of the previous financial year.

To qualify you must not have contributed an amount more than your non-concessional contributions cap for the relevant financial year.

The maximum super co-contribution depends on your income. If income is equal to or less than the lower income threshold ($41,112 for the 2021-2022 financial year) you may be eligible for a co-contribution of up to the full 'maximum entitlement'. For every dollar you earn above the lower income threshold, the maximum entitlement is reduced by 3.333 cents. The co-contribution is not payable if the income is at or above the higher income threshold and a minimum payment of $20 applies with payments being rounded to the nearest five cent multiple.

The amount of super co-contribution depends on the amount of non-concessional (after-tax) contributions you put into your super and the 'matching rate' for the financial year in which the contribution was made.

For earlier rates, see here.

4. Preservation rules

You can access your super when you retire or meet certain conditions of release.

Generally, super benefits cannot be accessed (are preserved) until you:

• reach age 65, or stop working with an employer on or after age 60
• retire permanently from the workforce after reaching your "preservation age" as shown in the table below
• reach your preservation age and receive super benefits as a non-commutable income stream (that is, an income stream that generally cannot be converted to a lump sum after it starts such as a transition to retirement income stream)
• die or become totally and permanently disabled
• are diagnosed with a terminal illness with a life expectancy of less than 24 months
• leave or change your employer and your preserved benefit is less than $200
• are a temporary resident permanently leaving Australia
• satisfy the relevant Australian regulatory body that your money should be released for compassionate reasons
• satisfy the conditions for severe financial hardship.

For more information on accessing super early, see here.

5. Concessional (before-tax) contribution caps

Concessional contributions are contributions made to your super account from your earnings before tax is deducted. These include the SG contribution, a personal contribution claimed as a tax deduction, any other employer contributions above the SG, and voluntary salary sacrifice contributions. There is a limit on the amount of contributions that will be given a tax concession - this is called the concessional contribution cap. If you have more than one super fund, all concessional contributions made to all your funds in the particular financial year are added together and counted towards the cap.

For earlier rates, see here.

The concessional contributions cap (the general cap as shown in the table above) is indexed annually in line with average weekly ordinary time earnings (AWOTE). Indexation does not increase the cap in some years as increases are rounded down to the nearest multiple of $2,500.

5.1 Carry-forward concessional contributions

From 1 July 2018, any unused portion of the concessional cap can be used to add contributions above the cap in subsequent years, on a rolling basis for a period of up to 5 years (2019-20 is the first financial year that unused concessional contributions can be accessed). In order to access this provision individuals must have a total superannuation balance of less than $500,000 on 30 June of the previous financial year.

For more information on carry-forward of unused concessional contributions, see here

5.2 Excess concessional contribution

If you go over the concessional contribution cap, you will pay extra tax on the excess contributions (at your marginal tax rate, less 15% tax already paid). If you leave the excess concessional contributions in super, the excess amount will be counted as non-concessional contributions. You also have the option of withdrawing the excess amount out of your account. The Australian Taxation Office (ATO) will send you information on your options when a breach of this cap occurs.

An Excess Concessional Contribution (ECC) charge applies to contributions that exceed the concessional contribution cap from 2013-14 to 2020-21. The ECC charge has been removed from 1 July 2021. (for more information on ECC charge, see here).

6. Non-concessional (after-tax) contribution caps

Non-concessional contributions (NCC) are generally the after-tax contributions you make to a super fund. They include personal contributions you make from your after-tax pay, spouse contributions and any concessional contribution that exceeds the concessional contributions cap. If you have more than one super fund, all non-concessional contributions made to all your funds are added together and counted towards the cap.

^* From 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 (for 2021-22 this is $1.7M).

If you are interested in making a larger contribution in a financial year, and you are under 67 on 1 July of that financial year, you may be able to ‘bring forward’ the next 2 years’ worth of non-concessional contributions, meaning you use some of your cap for the next 2 years to make a larger contribution in one year. For example, in 2021-22 you could contribute up to $330,000 in that year then no contributions over the next 2 financial years without exceeding the cap. Therefore, the cap for the bring forward option is calculated by multiplying the non-concessional cap of the first year by three.

From 1 July 2017 the bring-forward amount and period is dependent on your total superannuation balance on the day before the financial year contributions that trigger the bring-forward. For 2021-22 financial year this is:

For earlier rates and additional information, see here.

6.1 Excess non-concessional contribution

Individuals have the option of electing to release non-concessional superannuation contributions made from 1 July 2013 which are in excess of the non-concessional contributions cap for 2013-14 and future income years. You can also request to release any associated earnings (up to 85%) that the non-concessional contribution made whilst it was in your super account. If you elect to withdraw the associated earnings the full earnings amount will be taxed at your marginal tax rate, however a 15% tax offset will be available to recognise the tax on earning paid whilst it was inside your super account.

An associated earnings amount is calculated to approximate the amount you earned from the excess non-concessional contributions while they were held your superannuation fund. The rates used to calculate this amount each financial year are shown in the below table:

For earlier rates, see here.

A valid election must be made within 60 days of the excess non-concessional contributions determination. Where an individual does not make a valid election to release excess non-concessional contributions, excess non-concessional contributions will be subject to tax of 47%.

6.2 Re-contribution of COVID early release superannuation amounts

From 1 July 2021, individuals who accessed their superannuation under COVID-19 early release will be able to re-contribute up to the amount they received without the contributions counting toward their non-concessional cap. These contributions:

• can be made between 1 July 2021 and 30 June 2030
• cannot exceed the amount accessed under COVID-19 early release
• cannot be claimed as a personal superannuation deduction.

Individuals choosing to re-contribute must notify their fund in an approved form (before or at the time of making the re-contribution). The ATO aims to provide further details and the approved form by 31 August 2021.

For the latest information visit the ATO website here.

7. Income streams – minimum & maximum annual payments and Transfer balance cap

7.1 Minimum annual payments

Once a pension commences, a minimum amount is required to be paid each financial year.

The minimum pension payment rates for an account-based pension or a transition to retirement income stream are shown in the table below.

For more information, or for details on how you can reduce your payment amounts, see here.

7.2 Maximum annual payments

There is no maximum amount other than the balance of your pension account for account based pensions.

A transition to retirement income stream has a maximum amount which can be taken of 10% of the account balance at the start of the financial year or the start of the income stream.

7.3 Transfer balance cap

From 1 July 2017 the government is imposing a maximum amount that can be transferred into retirement phase, which includes all products such as account based pensions and annuities. The transfer balance cap applies to the total amount transferred from super into retirement phase, regardless of how many accounts an individual holds. The general transfer cap currently $1.7 million (2021-22) and will be periodically indexed with CPI in $100,000 increments. Any individual already in retirement phase will need to ensure adherence to this cap (those who have started a retirement phase income stream before 1 July 2021 will have a personal transfer balance cap of between $1.6 million and $1.7 million).

This cap only applies to monies held in retirement phase. You can find more information here.

You can read about the indexation of the general transfer balance cap from 1 July 2021, here.

8. Tax & Tax File Number

8.1 Tax on super

The government provides a range of tax concessions and incentives to complying super funds such as Rest.

Super can be subject to tax on:

• contributions (when contributions are made into your super account)
• earnings (on the investments in super)
• withdrawals.

8.2 Tax on contributions

Concessional (before-tax) contributions are taxed in the fund at a concessional tax rate of 15%.

For those with an income (including super contributions) of more than $250,000 per annum, contributions tax will effectively rise from 15% to 30% on some or all of their super contributions.

For more information, please visit the ATO website.

Any concessional contributions above the concessional contribution cap will be subject to additional tax.

A notice of excess concessional contributions determination will be provided by the ATO, requiring you to pay the additional tax. You will have the option of either making a withdrawal from your super account to meet this payment, or paying it directly to the ATO.

For 2021-22, those with adjustable taxable income under $37,000 will receive a low income superannuation tax offset (LISTO). The LISTO payment is equal to 15% of total concessional (before-tax) contributions for a financial year, capped at $500 per year.

Non-concessional (after-tax) contributions are generally not taxed in the fund. However, any non-concessional contributions above the cap which are left in super, will be taxed at the rate of 47%. However as discussed above (6.1) you can elect to withdraw the excess contribution amount from your super account to avoid paying the excess contribution tax.

8.3 Tax on earnings

Investment earnings from your super fund are taxed at a rate of up to 15%. This tax is reflected in the unit price for each investment option.

Investment earnings from your ‘retirement phase’ pension fund are tax free (up to your transfer balance cap).

Transition to Retirement income streams are not considered to be in ‘retirement phase’ and as such a tax rate of 15% will apply until it is in the retirement phase (ie you reach your preservation age and declare retirement or turn age 65).

8.4 Tax on withdrawals

Generally, if you take any part of your super benefit after age 60, no tax is payable.

Prior to age 60 some tax may be payable and will be deducted from your super benefit by the fund. The tax deducted depends on the components within your account. Superannuation accounts are divided into two components for tax purposes, a tax-free component and a taxable component. The tax-free component will always be tax-free, the taxable component may attract tax depending upon your age.

The table below shows how the different components of a super benefit are taxed from a taxed superannuation fund.


Tax on lump sum superannuation payments

NB – if you are receiving a payment due to Total and Permanent Disability the above age based tax rates apply, however the fund will complete a calculation to increase your tax-free component.

^* Death benefits may include an untaxed component, which is taxed at 30% plus Medicare Levy when paid to a non-dependant for tax purposes.


Tax on account based and transition to retirement income payments

# Note: Additional tax may be payable on any untaxed element of your Rest account or if you have not provided us with your TFN.

The Medicare Levy for the financial year 2021-2022 is 2%

Please refer to the ATO website for more information on how the different components of superannuation benefits are taxed.


Departing Australia superannuation payment (DASP)

*Includes 3% Budget repair levy
**Includes 2% Budget repair levy

8.5 Low rate cap amount

The application of the low rate threshold for super lump sum payments is capped. The low rate cap amount is reduced by any amount previously applied to the low rate threshold.

The above caps are indexed in line with Average Weekly Ordinary Time Earnings (AWOTE), in increments of $5,000 (rounded down).

8.6 Untaxed plan cap amount

The untaxed plan cap amount limits the concessional tax treatment of benefits that have not been subject to contributions tax in a super fund (untaxed elements). The untaxed plan cap amount applies to each super plan from which you receive super lump sum member benefits.

The above caps are indexed in line with Average Weekly Ordinary Time Earnings (AWOTE), in increments of $5,000 (rounded down).

8.7 Tax File Number (TFN)

Before providing your TFN to us, you (member or beneficiary) need to know that:

Under the Superannuation Industry (Supervision) Act 1993, your superannuation fund is authorised to collect, use and disclose your tax file number.

The trustee of your superannuation fund may disclose your tax file number to another superannuation provider, when your benefits are being transferred, unless you request the trustee of your superannuation fund in writing that your tax file number not be disclosed to any other superannuation provider.

Declining to quote your tax file number to the trustee of your superannuation fund is not an offence. However, giving your tax file number to your superannuation fund will have the following advantages:

• your superannuation fund will be able to accept all permitted types of contributions to your account/s;
• other than the tax that may ordinarily apply, you will not pay more tax than you need to - this affects both contributions to your superannuation and benefit payments when you start drawing down your superannuation benefits; and
• it will make it much easier to find different superannuation accounts in your name so that you receive all your superannuation benefits when you retire.

If you don’t give us your TFN, your concessional contributions will be taxed at 45% plus Medicare Levy of 2%. It also means that we can’t accept non-concessional contributions.

9. Age Restrictions on contributions

Age based restrictions apply for contributions, for example from age 67 you must meet the work test^^ before you can make an after-tax contribution or salary sacrifice. From age 75, your fund can only accept mandated contributions such as super guarantee contributions. The table below provides an overview of age restrictions for some contribution types:

^{^} Includes on or before 28 days after the end of the month in which the member turns 75 years old.

^# To be eligible for the Government co contribution, you will need to be aged under 71 at the end of financial year.

^{^^} As part of the 2021-22 Budget, the Government has proposed that from 1 July 2022 individuals aged 67-74 will be able to make personal contributions and salary sacrifice contributions without meeting the work test (individuals must still meet the work test to claim a deduction for personal contributions). This measure is not yet law.

9.1 Work Test

As indicated in the table above, if you are aged 67 to 74 you must meet the work test before a super fund can accept voluntary employer, personal or spouse contributions. To meet the work test requirements a person must be gainfully employed i.e. employed or self-employed for at least 40 hours within 30 consecutive days in the financial year the contributions are made.

From 1 July 2019, person’s aged 67 to 74 who fail the work test may be eligible for the work test exemption, which is only available once. To be eligible you must have met the Work Test in the previous financial year and have a total superannuation balance below $300,000 at the end of the previous financial year.

As part of the 2021-22 Budget, the Government has proposed that from 1 July 2022 individuals aged 67-74 will be able to make personal contributions and salary sacrifice contributions without meeting the work test (individuals must still meet the work test to claim a deduction for personal contributions). This measure is not yet law.

10. Housing Affordability Measures - Downsizer Contribution and First Home Super Saver Scheme

10.1 Downsizer Contribution

You may be able to make a downsizer contribution if you sell your home after 1 July 2018 and are aged 65 or over (The Government has proposed that from 1 July 2022, the eligibility age will be lowered from 65 to 60.  This measure is not yet law).

The downsizer contribution can only be made from the sale of one home, subject to a cap which is the lesser of $300,000 or total sale proceeds (Couples may be able to contribute up to $600,000 combined).

There are some conditions you must meet to make a downsizer contribution, which includes:

• there is a 10-year ownership requirement
• the home must qualify for the CGT main residence exemption (in part or whole)
• you must be over age 65 at the time of contribution (the work test does not apply for the downsizer contribution)
• the contribution must generally be made within 90 days of receiving the proceeds of sale, which is usually the date of settlement.

For more information see here.

10.2 First Home Super Saver Scheme

From 1 July 2018, the First Home Super Saver Scheme allows first home savers to withdraw the extra contributions they have made from 1 July 2017 and use this as a deposit for their first home.

Only voluntary contributions may be eligible for withdrawal (eg salary sacrifice and after -tax contributions, but not SG, spouse contributions or contributions which exceed the caps). You can apply to have:
 

• a maximum of $15,000 of your voluntary contributions from any financial year, and
• up to a total of $30,000 contributions across all years (as part of the 2021-22 Budget, the Government announced that it will increase this maximum amount from $30,000 to $50,000. This measure is not yet law).

You can only use the First Home Super Saver Scheme if you are:
 

• over 18
• haven’t previously owned property in Australia (unless financial hardship rules apply)
• haven’t already requested release of your super saving under the scheme.

You can ask the ATO to make a determination of how much you can access under the scheme and once ready, request for a release.

You can withdraw up to: