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 2020/21.Read more
Making super contributions once you reach age 67 is more difficult as you need to meet the requirements of a work test. Here’s a simple guide to understanding the rules and how they affect you.Read more
Older Aussies looking to boost their retirement income can take advantage of the government’s Pension Loans Scheme to generate a non taxable fortnightly income stream that helps pay their bills.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
If you feel like you’ve missed the boat when it comes to building your retirement savings, it could be time to use an often-overlooked contribution opportunity.Read more
Life is never quiet for SMSF trustees and 2020/21 looks like it will be no different, with a recession and lots of new legislative requirements to deal with.Read more
SUPER CONTRIBUTIONS GUIDES
Concessional contributions are the most common type of super contribution, but many people don’t understand what they are or what is their annual limit, so here’s our simple guide.Read more
While your employer is making regular Super Guarantee contributions into your super account, you can boost your account balance by using after-tax money to make non-concessional contributions.Read more
Free money from the government is pretty rare. But one of the simplest ways is by investing a few extra dollars into your super account to score a co-contribution payment.Read more
Finding extra dollars to put into your super account can be difficult, so receiving a $500 payment from the government can be a welcome boost for your retirement savings.Read more
SUPER TAX GUIDES
Although you can retire and access your super if you’re under age 60, the tax man is going to want his cut, so ensure you understand the rules before acting.Read more
Knowing how much tax you’ll pay when you withdraw your super savings is important and the rules change once you reach age 60.Read more
AGE PENSION RATES AND THRESHOLDS
This article details the rules and limits 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
Learn the Australian income tax rates for 2019/20 and 2020/21, as well as details on how income tax is calculated, deductions, offsets and levies.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 $700 Low Income Tax Offset (LITO), combined with the tax-free threshold of $18,200, and the Low and Middle Income Tax Offset effectively allows working Australians to earn up to $22,801 for the 2020/21 financial year before they need to pay any income tax or 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