Superannuation, Age Pension and income tax rules for 2019/2020
Happy new (financial) year!
In this special edition we’ve updated all SuperGuide articles that cover the key rules, regulations, rates and thresholds for the 2019/2020 financial year, and highlighted some of the key changes that come into place from 1 July 2019.
- SUPER RULES: A number of superannuation rules come into force on 1 July 2019, including the Protecting Your Super reforms, expansion of the Pension Loans Scheme and the introduction of an exemption from the work test for voluntary superannuation contributions in the first income year after retirement. You can now also take advantage of the carry-forward contributions rule for the first time. In the first two articles below you can read overviews of the main rule changes as well as the key rates and thresholds for 2019/2020.
- SUPER CONTRIBUTIONS GUIDES: Our guides for concessional and non-concessional contributions, plus co-contributions and the Low Income Superannuation Tax Offset (LISTO) have all been updated for 2019/2020.
- SUPER AND TAX GUIDES: The super tax rules can seem complicated, particularly in terms of how they apply before and after the age of 60. For your reference we have updated our comprehensive super and tax guides.
- AGE PENSION: The assets and income test and deeming rate thresholds all increase on 1 July 2019, which means that more Australians can receive a full or a higher part Age Pension. The work bonus also increases from $250 to $300 per fortnight, and the Age Pension age increases to 66.
- INCOME TAX: Learn about the legislated income tax rates for 2019/2020, including the low income tax offset (LITO), the low and middle income tax offset (LMITO) and the senior Australians and Pensioners Tax Offset (SAPTO). Note that there were also income tax cuts announced in the 2019 Federal Budget, but those have not yet passed into law.
2019/2020 SUPER RULES AND RECENT CHANGES
If you are wondering how recent rule changes have affected your super and retirement plans, here’s a quick guide to the key changes and when they commenced.Read more
From tax on super lump sums to the transfer balance cap, there are a range of rates and thresholds that can affect your super. In this article we provide an overview of the key aspects of each of these rates and thresholds for 2019/20.Read more
The key thing to understand about the work test for super contributions over the age of 65 is that you need to be ‘gainfully employed’ on at least a part-time basis to pass the work test.Read more
Retirees are always looking for new ways to boost their retirement income or to pay for expenses, like home care. Although downsizing to a small home can be one option, the Pension Loans Scheme (PLS) offered by the federal government is a rarely considered alternative.Read more
The Protecting Your Super Package of reforms start on 1 July 2019. These reforms are designed to protect your super accounts from being eroded by insurance policy fees and premiums that you may not require, as well as help to consolidate your low balance super accounts.Read more
Feel like you’ve missed the boat when it comes to your retirement savings? Carry-forward super contributions could be the answer for many Australians looking to boost the balance in their super account.Read more
The past few years have seen SMSF trustees kept busy implementing numerous legislative modifications to the super system, plus the major reform package commencing on 1 July 2017. Unfortunately, this financial year seems unlikely to be any different.Read more
SUPER CONTRIBUTIONS GUIDES
Although it can be difficult getting your head around all the different types of super contributions that go into your super account, concessional contributions are the ones you are mostly likely to have and are pretty straightforward to understand.Read more
You can make contributions into your super account from your take home pay or money outside the super system. Since these contributions have already been taxed before you contribute them to your super account, they are not treated concessionally and are called non-concessional contributions.Read more
One of the simplest ways to get free money from the government is to invest a few extra dollars into your super account and take advantage of the co-contribution scheme.Read more
It’s getting harder to pocket a tax refund these days, so when the Government is offering one for your super contributions, it’s worthwhile knowing just how you much you are likely to get.Read more
SUPER TAX GUIDES
If you retire before the age of 60, your super benefit payments are likely to be subject to tax — but not always. With the right structure, and usually with expert advice, many Australians retiring early can end up paying no tax.Read more
When it comes to the super system, reaching age 60 triggers an important change. It means you can withdraw you super benefits and most people pay no tax on their savings.Read more
AGE PENSION RATES AND THRESHOLDS
This article details the rules of the Age Pension assets test (how much your savings and other assets are worth), which is one half of the means test (along with the income test) that determines how much Age Pension you could be eligible for.Read more
A common question for those nearing or in retirement is “How much can a pensioner earn before it affects the pension?”.Read more
The Work Bonus is an incentive to keep pensioners in the workforce. Find out whether you’re eligible for this fortnightly boost to your pension.Read more
On 22 March 2020 the Federal government announced that from 1 May 2020 the deeming rates would be lowered to 0.25% (lower rate) and 2.25% (upper rate).Read more
The current Age Pension eligibility age is 66 years (for any person born between 1 January 1954 and 30 June 1955). If you were born before 1 January 1954 you have already reached Age Pension age, and if you were born after 30 June 1955 your Age Pension age may be 66 years and 6 months, or 67 years, depending on your date of birth.Read more
Age Pension rates increased on 20 March 2020. This article also explains how the Age Pension works, and includes the latest Age Pension rates for residents, non-residents, and the transitional Age Pension.Read more
Our Age Pension calculator gives you an indication of potential Age Pension entitlements. The Age Pension rates are those that apply from 20 March 2020 to 19 September 2020.Read more
The Low and Middle Income Tax Offset (LMITO) helps low and middle income earners lower the amount of tax they need to pay. Because it is a tax offset, it can only be used to lower the amount of tax that you owe and not to generate a tax refund or pay your Medicare Levy.Read more
The Low Income Tax Offset (LITO) means working Australians can earn up to $20,452 before they need to pay any income tax. It was introduced by the Government in 1993. Because it is a tax offset, it can only be used to lower the amount of tax that you owe and not to generate a tax refund or pay your Medicare Levy.Read more
The Senior Australians and Pensioners Tax Offset (SAPTO) won’t shower you in riches. But depending on your age, relationship status and income, it could provide a handy tax offset of up to $2,230.Read more
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