Superannuation, Age Pension and income tax rules for 2020-21
Happy new (financial) year!
In this special edition we’ve updated all SuperGuide articles covering the key rules, regulations, rates and thresholds for the 2020-21 financial year. We also highlight some of the key changes that take place from 1 July 2020.
Highlights include:
- SUPER RULES: While circumstances have delayed some rule changes, there are still plenty to get your head around, most of them positive. Like the removal of the work test for members wanting to make super contributions to age 67, an increase in the age limit to receive spouse contributions and a continuation of lower minimum pension drawdowns.
- 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 2020-21.
- AGE PENSION: The assets and income tests thresholds all increase on 1 July 2020, which means that more Australians can receive a full or a higher part Age Pension.
- INCOME TAX: Learn about the income tax rates for 2020-21, including the Low Income Tax Offset (LITO), the Low and Middle Income Tax Offset (LMITO) and the Senior Australians and Pensioners Tax Offset (SAPTO).
2020-21 SUPER RULES
Superannuation rule changes from July 2021
Keeping up with the constant rule changes to super can be tricky, so here’s our annual list of what you need to know.
Read moreKey superannuation rates and thresholds for 2021–22
With so many recent changes to super, we’ve compiled this handy list of the rates, caps and thresholds that now apply.
Read moreSMSF trustee housekeeping checklist for 2021–22
Life is never quiet for SMSF trustees. With new contribution limits and recovery from the pandemic, it looks like the new financial year will be no different.
Read more2020-21 SUPER CONTRIBUTIONS GUIDES
Concessional super contributions guide (2021–22)
Concessional contributions are taxed at concessional rates, so to make the most of them it’s important to understand how they work.
Read moreNon-concessional super contributions guide (2021–22)
Non-concessional contributions are a great way to top up your super retirement savings. Here’s our simple guide to how they work.
Read moreHow a government co-contribution can help boost your super savings
Getting the government to top up your super account can be easy way to boost your retirement savings. Here’s an easy guide to the tips and traps.
Read moreHow LISTO works (Low Income Superannuation Tax Offset)
If you can find spare cash to make a contribution into your super account, you could be eligible to receive the LISTO top-up of up to $500 from the government.
Read moreCOMING UP: Look out for our super contributions strategies coverage in SuperGuide’s July 2020 newsletter
UPDATED AGE PENSION THRESHOLDS
Age Pension income test limits (September 2021 to March 2022)
A common question for those nearing or in retirement is “How much can a pensioner earn before it affects the pension?”.
Read moreAge Pension assets test limits (September 2021 to March 2022)
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 moreINCOME TAX RATES FOR 2020-21
Income tax: Australian tax brackets and rates (2020–21 and 2021–22)
The amount of tax you pay will depend on your assessable income less a host of tax deductions and offsets. Here are the latest rates and thresholds.
Read moreHow does SAPTO work? (Senior Australians and Pensioners Tax Offset)
SAPTO can help retirees reduce their tax bill but working out whether you are eligible and for how much is far from straightforward.
Read morePersonal income tax cuts (2018–2025): What it means for you
The majority of Australians are already enjoying tax cuts and increased financial support in the form of tax offsets, with more to come.
Read moreGuide to the Low and Middle Income Tax Offset (LMITO)
LMITO is here for another year, saving taxpayers up to $1,080, so catch it if you can.
Read moreGuide to the Low Income Tax Offset (LITO)
Low-income earners may be eligible to reduce their tax bill by as much as $700, without lifting a finger. Check our guide to who’s eligible and for how much.
Read more