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: Your guide for 2020/21
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 moreKey superannuation rates and thresholds for 2020/21
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 moreSMSF trustee housekeeping checklist for 2020/21
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 more2020/21 SUPER CONTRIBUTIONS GUIDES
2020/21 guide to concessional contributions (before-tax super contributions)
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 more2020/21 guide to non-concessional contributions (after-tax super contributions)
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 moreHow a government co-contribution can help boost your super savings
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 moreLISTO (Low Income Superannuation Tax Offset): Refund of super tax for low income earners
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 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 (July 2020 to September 2020)
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 (July 2020 to September 2020)
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 2019/20)
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 moreHow does SAPTO work? (Senior Australians and Pensioners Tax Offset)
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 morePersonal income tax cuts (2018–2025): What it means for you
The Personal Income Tax Plan which provides targeted tax relief over seven years for low and middle income earners and protects middle income Australians from bracket creep consists of three steps.
Read moreGuide to the Low and Middle Income Tax Offset (LMITO)
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 moreGuide to the Low Income Tax Offset (LITO)
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.
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