Super Guide for your 70s

When you turn 70, your employer is not required to make compulsory Superannuation Guarantee contributions to your super account (although this rule is set to change from July 2013).

If you’re 75 or over, you are no longer able to make super contributions. Any super benefits that you withdraw will be tax-free (unless you’re a member of certain older public service super schemes. If you’re receiving a private account-based pension, then you need to be aware of the special payment factors for individuals aged 75-plus.

Set out below are SuperGuide articles explaining Super Guide for your 70s.

Temporary concessional cap for over-60s from July 2013

Superannuation alert

The federal government will be introducing a temporary concessional cap for over-60s from 1 July 2013, which will also apply to over-50s from 1 July 2014. Draft legislation has been prepared for this change. The government will be introducing an unindexed cap of $35,000 for over 60s (from 1 July … [Read more...]

New concessional cap for over-60s, and for over-50s

super_cap_5956980_c

Q: Do you need to be 60 at July 1 or could you turn 60 any time in 2013/2014 to take advantage of the new $35,000 cap? A: For the benefit of other readers, I will first explain the background to the new over-60s cap. On 5 April 2013, the federal government announced that it will be introducing an … [Read more...]

Superannuation Guarantee increases to 12%, eventually

Pixmac000084598074_goodnews

Note: This article explains the Superannuation Guarantee rate. If you’re seeking information on other superannuation rates and thresholds see SuperGuide article Super rates and thresholds for the 2012/2013 year. In the 2013 Federal Budget papers, the planned increase in Superannuation … [Read more...]

Concessional contributions caps: 10 facts you should know

fact

For the 2012/2013 year, only one concessional (before-tax) contributions cap exists for all ages, and that cap is $25,000. Before July 2012, we had a concessional cap for under-50s and a concessional cap for those 50 years and over. From the 2013/2014 year, we will have a special concessional cap … [Read more...]

Excess contributions tax: how the new rules work

Super_works_5952656_c

The excess contributions tax regime has been, and continues to be a total disaster. The federal government has cared very little about the fact that conscientious super savers, who made every attempt to the follow the rules, were being hit with outrageous tax bills, savaging hard-earned retirement … [Read more...]

Super contributions: How much co-contribution will I get?

Q: Where can I find the spreadsheet where you can calculate how much to put in as a co-contribution, and what the government will pay you in return for that super contribution. In other words the sliding scale of co-contributions. The schedule you refer to can be found at the link here. You … [Read more...]

Pensions: Is there an upper limit to how much we can withdraw?

4054766770_8ba3856c00_b

Q: I am aware that the minimum amount of pension withdrawal is normally 4% (for under 65s) of the pension account balance (currently 3% for 2012/2013). Is there now any MAXIMUM amount of pension required to be drawn from a super fund? If not, is this still the case for account based pensions, … [Read more...]

Bring forward rule: 10 facts you should know

Pixmac000084284866_forward

I receive a lot of questions from readers seeking information about how the non-concessional (after-tax) super contributions rules work; in particular, how the bring-forward rule works. More recently I have received several emails from readers who have fallen foul of the bring-forward rules and … [Read more...]

Age Pension: March 2013 rates now available

Pixmac000010091271_septemberrates

The new Age Pension rates, taking effect from 20 March 2013 (and applicable until 19 September 2013) are set out in the tables below. A single person eligible for the full Age Pension in Australia can now expect an annual Age Pension income (including supplement, and Clean Energy Supplement) of … [Read more...]