The ATO on 4 March 2019 have published the super rates and thresholds for the upcoming 2019/20 financial year.
There is no change to the concessional contribution (CC) cap of $25,000. Whilst indexation from 1 July 2017 increases in $2,500 increments, the AWOTE indexation was insufficient to trigger and increase. As a result, there is no change to the non-concessional contribution (NCC) cap of $100,000.
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Income year
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Your age at this date
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Concessional contribution cap
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2019-20
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All ages
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$25,000
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Note that that first year of any unused concessional cap carry-forward rules commences in 2019/20 financial year and is subject to a member’s total superannuation balance (TSB) being less than $500,000 at 30 June 2019.
The low rate cap, the ETP cap for life benefit termination payments and the death benefit termination payments ETP cap for the 2018/19 income year all increase to $210,000.
The CGT cap amount and untaxed cap plan amount increases to $1,515,000.
The maximum contributions base indexes to $55,270 per quarter for the 2019/20 income year, providing an annual equivalent of $221,080.
No change occurs to the general transfer balance cap of $1,600,000 for the 2019/20 income year, nor the defined benefit income cap of $100,000.
For further information, see https://www.ato.gov.au/Rates/Key-superannuation-rates-and-thresholds/
Author: Aaron Dunn
Aaron is a well-known identity within the SMSF sector and is seen as a trusted source for professionals to learn more about SMSFs and the direction of the sector. Aaron's insights into both technical and practice-based issues within the SMSF industry sees him regularly sort out to participate as a key stakeholder across regulatory and policy issues.
As an SMSF specialist and CPA with more than 20 years experience, Aaron is the CEO and Co-founder of Smarter SMSF, a specialist business that provides technology-based solutions to educate, automate and simplify the complexities of SMSFs to accountants, financial advisers.
A lover of sport, in particular AFL football (Essendon) and athletics, Aaron was previously a nationally ranked high jumper having set a personal best jump of 2.14m.
