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
When you mention super, most people shake their head and mutter about the constant rule changes. This article is a quick guide to the key changes and when they commenced. Read more
There are a range of key 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. 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
A common question for those nearing or in retirement is “How much money can I have before it affects my pension?”. 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
Another common question is “How much can a pensioner earn before it affects the pension?”. This article details the rules of the Age Pension income test (how much you earn), which is the other half of the means test (along with the assets test) that determines how much Age Pension you could be eligible for. Read more
The Age Pension work bonus applies to the Age Pension income test, which is a means test you must pass as one of the requirements to access this government payment. Read more
Deeming is a key concept in the Age Pension income test, which is a test you must pass as one of the requirements to access this government payment. Deeming rules are used by the Department of Social Services (via Centrelink) for income test calculation purposes. Read more
The current Age Pension eligibility age is 66 years, although this age is progressively increasing to 67 from 1 July 2023. Read more
This article explains how the Age Pension works, and includes the latest Age Pension rates, applicable since 20 March 2019 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 and thresholds are those that apply from 1 July 2019 to 19 September 2019. Read more
Learn the Australian income tax rates for 2019/2020 and previous years, as well as details on how income tax is calculated, deductions, offsets and levies. Read more
LMITO (sometimes referred to as LAMITO) is an acronym for the Low and Middle Income Tax Offset that the federal government introduced as part of the 2018 Budget. Read more
In order to fully understand how the low income tax offset (LITO) may apply to reduce the amount of tax payable by an individual it is first important to understand how income tax payable is calculated. Read more
SAPTO is a tax offset that’s available to eligible seniors and pensioners in Australia. It can reduce or even totally eliminate a recipient’s tax liability. Read more