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.
- 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
Navigating your way around the constant rule changes in the super system is tricky, so here’s our annual list of the modifications you need to know about.
A new financial year brings updated thresholds for a range of super measures. Take a look at the new numbers to check for opportunities.
2020-21 SUPER CONTRIBUTIONS GUIDES
Concessional contributions make up most of the money going into your super account, so it’s important to understand what these are and how they work.
Making a personal contribution into your super can be a great way to boost your retirement nest egg and enjoy the tax-effective benefits of the super system.
A free co-contribution payment made by the government into your super account can be a great way to boost your super account if you have some money to spare.
The Low Income Super Tax Offset is a government rebate that can help boost your super and make saving for retirement a little easier.
COMING UP: Look out for our super contributions strategies coverage in SuperGuide’s July 2020 newsletter
UPDATED AGE PENSION THRESHOLDS
A common question for those nearing or in retirement is “How much can a pensioner earn before it affects the pension?”.
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.
INCOME TAX RATES FOR 2020-21
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.
The majority of Australians are already enjoying tax cuts and increased financial support in the form of tax offsets, with more to come.
If you are eligible for the Age or DVA pension you could be in line for a handy tax rebate, depending on your taxable income and relationship status.
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.