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April 2006
Superannuation Contribution Splitting
|
This recently released Superannuation Industry (Supervision) Amendment
Regulations 2005 (No. 8) allow the splitting of superannuation
contributions between a member and their spouse from 1 January 2006.
After the end of a financial year, a member of a regulated
superannuation fund may request that the previous year’s contributions
be transferred, rolled-over or allocated to their spouse. It only
applies to contributions made from 1 January 2006 and only one
application
is allowed per year. Therefore a superannuant can only
apply for superannuation splitting after 30 June 2006.
The maximum contribution eligible for splitting is 85% of deductible
contributions (gross contributions less 15% tax) or 100% of
personal
contributions made in a financial year.
Contributions will not be able to be split if:
- The member’s spouse is over 65 or between 55 and 65 permanently
retired;
- The amount to be split exceeds the maximum splitting threshold
(85% for deductible contributions and 100% for deducted
contributions);
- The member has already applied for superannuation splitting in
that same financial year; or
- No specification of the amount to be split is provided when
applying for superannuation splitting.
Pensions commenced after 1 January 2006
The government has announced changes in relation to pensions in DIY
funds. The changes will affect both market-linked and allocated
pensions.
The maximum term of the pension can now be based upon the period
until the member reaches age 100 (or until the spouse reaches age 100).
Example
A male aged 65 will be able to choose a term between his life
expectancy at age 65 (i.e. 18 years) and a term based on his living to
age 100 (i.e. 35 years).
Individual Resident Tax Rates 2006/07*
|
|
$0 - $6,000 |
Nil |
|
$6,001 - $25,000 |
15¢ for each $1 over $6,000 |
|
$25,001- $75,000 |
$2,850 + 30¢ for each $1 over $25,000 |
|
$75,001 - $150,000 |
$17,850 + 40¢ for each $1 over $75,000 |
|
Over $150,000 |
$47,850 + 45¢ for each $1 over $150,000 |
* The above rates do not include 1.5% Medicare levy.
Superannuation Guarantee
|
2006/07 |
9% |
2001/02 |
8% |
|
2005/06 |
9% |
2000/01 |
8% |
|
2004/05 |
9% |
1999/00 |
7% |
|
2003/04 |
9% |
1998/99 |
7% |
|
2002/03 |
9% |
1997/98 |
6% |
Age-based Deduction Limits for Superannuation Contributions
|
Under 35 years |
$15,260 |
|
35 to 49 years |
$42,385 |
|
50 years and over |
$105,113 |
Government Contributions
|
Individual
|
Maximum
co-contribution
|
|
$28,000 or less |
$1,500 |
|
$28,001 - $57,999 |
$1,500 reduced by 5¢ for each $1 by which the
individual’s income exceeds $28,000 |
|
Greater than $58,000 |
Nil |
SGC – Maximum Contribution Base
|
Quarterly |
$35,240 |
|
Yearly |
$140,960 |
Superannuation Contribution Due Dates
|
1 January – 31 March |
28 April |
|
1 April – 30 June |
28 July |
|
1 July – 30 September |
28 October |
|
1 October – 31 December |
28 January |
Reasonable Benefits Limit for 2006/07
|
Lump Sum |
$678,149 |
|
Pension |
$1,356,291 |
Eligible Termination Payments
Other Termination Payments
Indexing Transitional RBLs
|
Lump sum RBL x (678,149 /
400,000) |
|
Pension RBL x (1,356,291 /
800,000) |
Tax-free Amount of a Bona Fide Redundancy or Approved Entity Retirement Payment
|
$6,783
Plus $3,392 for each year of completed service . |
Preservation Age
|
Date of
Birth
|
Preservation age
|
|
Before 1.7.60 |
55 |
|
1.7.60 – 30.6.61 |
56 |
|
1.7.61 – 30.6.62 |
57 |
|
1.7.62 – 30.6.63 |
58 |
|
1.7.63 – 30.6.64 |
59 |
|
After 30.6.64 |
60 |
Pension Asset Test
| |
Lower
Limit
|
Upper
Limit
|
| Single homeowner |
$161,500 |
$330,00 |
| Single non-homeowner |
$278,500 |
$447,00 |
| Couple homeowner |
$229,000 |
$509,500 |
| Couple non-homeowner |
$346,500 |
$626,500 |
Fortnightly Pension Income Test
| |
Maximum
pension
|
No
pension
|
| Single |
$128.00 |
$1,391.75 |
| Couple (combined) |
$228.00 |
$2,328.50 |
Age Pension Rate
| |
Per
fortnight
|
Annual
|
| Single |
$505.50 |
$13,143.00 |
| Couple |
$840.20 |
$21,845.20 |
Pension Valuation Factors
Pension Valuation Factors (PVFs) have been introduced for allocated pensions
commenced after 1 January 2006.
|
Age
|
Minimum Factor |
Maximum Factor |
|
55 |
21.1 |
11.5 |
|
56 |
20.8 |
11.4 |
|
57 |
20.4 |
11.3 |
|
58 |
20.1 |
11.2 |
|
59 |
19.7 |
11.0 |
|
60 |
19.3 |
10.9 |
|
61 |
18.9 |
10.7 |
|
62 |
18.5 |
10.5 |
|
63 |
18.1 |
10.3 |
|
64 |
17.7 |
10.1 |
|
65 |
17.3 |
9.9 |
|
66 |
16.8 |
9.6 |
|
67 |
16.4 |
9.3 |
|
68 |
16.0 |
9.1 |
|
69 |
15.5 |
8.7 |
|
70 |
15.1 |
8.4 |
|
71 |
14.6 |
8.0 |
|
72 |
14.2 |
7.6 |
|
73 |
13.7 |
7.2 |
|
74 |
13.3 |
6.7 |
|
75 |
12.8 |
6.2 |
|
76 |
12.3 |
5.7 |
|
77 |
11.9 |
5.1 |
|
78 |
11.4 |
4.5 |
|
79 |
10.9 |
3.8 |
|
80 |
10.5 |
3.1 |
|
81 |
10.0 |
2.3 |
|
82 |
9.6 |
1.4 |
|
83 |
9.1 |
1.0 |
|
84 |
8.7 |
1.0 |
|
85 |
8.3 |
1.0 |
|
86 |
7.9 |
1.0 |
|
87 |
7.5 |
1.0 |
|
88 |
7.2 |
1.0 |
|
89 |
6.9 |
1.0 |
|
90 |
6.6 |
1.0 |
|
91 |
6.3 |
1.0 |
|
92 |
6.0 |
1.0 |
|
93 |
5.8 |
1.0 |
|
94 |
5.5 |
1.0 |
|
95 |
5.3 |
1.0 |
|
96 |
5.1 |
1.0 |
|
97 |
4.9 |
1.0 |
|
98 |
4.7 |
1.0 |
|
99 |
4.5 |
1.0 |
|
100 or more |
4.4 |
1.0 |
|
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