Taxation of Superannuation Benefits
Superannuation benefits from a taxed source
Payments to dependants
Age of recipient
Lump Sum
Income stream
60 and over
Preservation age
to age 59
Not assessable not exempt
– No tax on amount below the
low rate cap*
Not assessable not exempt
Taxed at marginal rates, but
eligible for 15% tax offset
Under
preservation age
Taxation of Superannuation Death Benefits
– Taxed at a maximum rate of 15%
on amount over the low rate cap
Taxed at maximum rate of 20%
Taxed at marginal rates,
with no tax offset (15% tax
offset available if a disability
superannuation benefit)
Age of deceased
Superannuation Age of
death benefit
recipient
Any age
Lump sum
Any age
Aged 60 and
above
Income stream
Any age
Below age 60
Income stream
Above age 60
* Low rate cap amount: $195,000 (2015/16)
Age of recipient
Lump sum
60 and over
– Taxed at a maximum rate of 15% Taxed at marginal rates but
on amount up to the untaxed
eligible for a 10% tax offset
plan cap*
Preservation age
to age 59
Income stream
Under
preservation age
Income stream
Below age 60
– element untaxed in the fund is taxed
at marginal rates. Recipient entitled
to a 10% tax offset on this amount
Taxable component:
Tax treatment
Lump sum
Taxable component:
– element taxed in the fund is taxed at a
maximum rate of 15%
Taxed at marginal rates, with no
tax offset
Any age
Income stream
Any age
– Taxed at 45% on amount over
the untaxed plan cap
* Untaxed plan cap amount: $1.395m (2015/16)
** Low rate cap amount: $195,000 (2015/16)
Note that for the 2015/16 year, the 2% budget repair levy applies if an individual’s taxable
income exceeds $180,000. While the levy applies to superannuation lump sums to the extent
that the individual’s taxable income (including the lump sum) exceeds $180,000, a tax offset
mechanism ensures that the effective tax rate applying to the lump sum payment does not
exceed the relevant maximum tax rate.
– element untaxed in the fund is taxed at
a maximum rate of 30%
– Death benefit cannot be paid as
income stream
– Income streams that commenced
before 1 July 2007 are taxed as if
received by a dependant (see above)
Capital Gains Tax
Purchase date
CGT event happens
CGT Calculation
Before 20/9/1985
20/9/1985 - 20/9/1999
Any time
After 20/9/1999
After 20/9/1999
Any time
Nil
Indexed cost base method*
or discount method**
Discount method**
** 50% discount (individuals and trusts); 33 1/3% discount (complying superannuation entities,
FHSA trust and life insurance companies for complying superannuation/FHSA assets)
Note that from 8 May 2012, the CGT discount no longer applies to non-residents but remains
available for capital gains accrued before this time where non-residents choose to obtain a
market valuation of assets as at 8 May 2012.
Receiving spouse’s
assessable income (AI)*
Maximum contributions
entitled to tax offset (MC)
Maximum tax offset
(18% of the lesser of)
$0 - $10,800
$10,801 - $13,799
$13,800 +
$3,000
$3,000 - (AI - $10,800)
Nil
MC or actual contributions
MC or actual contributions
Nil
* AI is the sum of the person’s assessable income, reportable fringe benefits total and reportable
employer superannuation contributions.
Payroll tax rates and thresholds
The following payroll tax rates and thresholds are applicable in the various states and
territories for the financial year commencing 1 July 2015:
Maximum contribution base
Year
Amount in a quarterly contribution period
State
Rate (%)
Annual wages
threshold ($)
Monthly wages
threshold ($)
$50,810
New South Wales
5.45
750,000
59,426; 61,475 or
63,5251
Victoria
Queensland
South Australia
Western Australia
Tasmania
4.85
4.75
4.95
5.5
6.10
550,000
1,100,000
600,000
800,0002
1,250,000
ACT
Northern Territory
6.85
5.5
1,850,000
1,500,000
45,833
91,666
50,000
66,6673
99,044; 102,459 or
105,8744
154,166.66
125,000
2015/16
The maximum contribution base acts as a ceiling on an employee’s earnings for each quarter
in a financial year effectively limiting the amount of superannuation support that the
employer is required to provide for the employee for the quarter, and the amount of the SG
shortfall (and consequent SG charge) payable in respect of the employee.
Contribution caps
Contributions cap type
2015/16
Concessional contributions cap
Concessional contributions cap – aged 49 years or more on 30
June 2015
Non-concessional contributions cap*
Non-concessional contributions - CGT cap amount
$30,000
$35,000
$180,000
$1.395m
* A bring forward rule allows individuals aged under 65 to make non-concessional contributions of up
to three times their non-concessional contributions cap over a three-year period. The bring-forward cap
is three times the non-concessional contributions cap of the first year in which the rule applies.
Government co-contribution (2015/16)
Maximum co-contribution payable
Lower income
threshold
Higher income
threshold
$500
$35,454
$50,454
Low income superannuation contribution*
Individual’s adjusted
taxable income:
$0 - $37, 000
Assets held longer than 12 months
* Indexation of cost base frozen as at 30 September 1999 (68.7).
Crowe Horwath is the largest provider of practical accounting, audit, tax,
business and financial advice to individuals and businesses from a network
of over 80 offices throughout the country.
Superannuation Guarantee Charge
The charge percentage remains at 9.5% for the 2015/16 to 2020/21 years. The charge
percentage will then increase by 0.5% in 2021/22 and in each later year until it reaches
12% for years starting on or after 1 July 2025.
Superannuation Age of
death benefit
recipient
Any age
- Type 1 benefits - 2.1463
- Type 2 benefits - 1.9608
The SG rate is 9.5% for 2015/16.
Payments to non-dependants
Any age
49 %
– element untaxed in the fund is taxed
at marginal rates. Recipient entitled
to a 10% tax offset on this amount
Taxable component:
– element untaxed in the fund is taxed
at marginal rates
Age of deceased
Fringe benefit taxable amount - gross-up rate
– element taxed in the fund is tax-free
– element taxed in the fund is taxed at
marginal rates. Recipient entitled to a
15% tax offset on this amount
Taxed at marginal rates, with no
tax offset
– Taxed at maximum rate of 30%
on amount above the low rate
cap amount up to the untaxed
plan cap
– Taxed at 45% on amount over
the untaxed plan cap
– Taxed at a maximum rate of
30% on amount up to the
untaxed plan cap
Below age 60
FBT rate (2015/16)
Tax-free (not assessable, not exempt
income)
Taxable component:
– element taxed in the fund is tax-free
Superannuation benefits from an untaxed source
– Taxed at 45% on amount over
the untaxed plan cap*
– Taxed at maximum rate of 15%
on amount up to the low rate
cap**
Tax treatment
Spouse contributions – tax offset
Fringe Benefits Tax
LISC amount payable is:
(i) ECC x 15% (except where (ii) or (iii) applies)
(ii) $500 where the amount worked out in (i) exceeds $500
(iii) $10 where the amount worked out in (i) is less than $10
An individual is entitled to a low income superannuation contribution (LISC), based on 15% of the
individual’s total eligible concessional contributions (ECC), up to a maximum of $500. However, the
LISC has been abolished for financial years starting from 1 July 2017.
NSW monthly threshold is based on 29,30 or 31 days in a month.
From 2016/17 the annual threshold will be $850,000.
From 2016/17 the monthly threshold will be $70,833.
4
Tasmania monthly threshold is based on 29, 30 or 31 days in the month.
1
2
3
HELP repayment thresholds and rates
The Higher Education Loan Programme income thresholds and the repayment rates for
2015/16 are as follows:
2015/16 repayment income
Below $54,126
$54,126-$60,292
$60,293-$66,456
$66,457-$69,949
$69,950-$75,190
$75,191-$81,432
$81,433-$85,718
$85,719-$94,331
$94,332-$100,519
$100,520 and above
*The repayment rate is applied to the repayment income.
Rates of repayment*
Nil
4%
4.5%
5%
5.5%
6%
6.5%
7%
7.5%
8%
DISCLAIMER
The information provided in this guide is believed to be accurate as at August 2015.
However, the publisher and authors expressly disclaim all and any liability and
responsibility to any person, of the consequences of anything done or omitted to be
done by any such person in reliance of the contents of this publication.
For all your taxation information, refer to the CCH Australian Master Tax Guide - the
essential reference guide for tax professionals.
Tax Rates &
Thresholds
Handy Guide
2015/16 Income Year
Issued August 2015
Company rates (2015/16)
Income Tax Rates
Individuals (2015/16)
Residents
2015/16
Taxable income (column 1)
Tax on column 1
% on excess (marginal rate)
$18,200
$37,000
$80,000
$180,000*
Nil
$3,572
$17,547
$54,547*
19
32.5
37
45*
Medicare levy/Medicare levy surcharge
For 2015/16, the rate of Medicare levy is 2% of a resident individual’s taxable income for the
income year. No Medicare levy is payable where a resident individual’s taxable income does
not exceed a certain threshold amount (not yet known for 2015/16; $20,896 for 2014/15).
Further, where a resident individual is not covered by private patient hospital insurance and
their “income for surcharge purposes” for the year is more than $90,000, an additional
Medicare levy surcharge of 1%, 1.25% or 1.5% is payable depending on their level of income
and age.
The table below indicates how the Medicare levy surcharge rules apply in conjunction with the
private health insurance rebate rules.
Families*
Under 65 years
of age
65–69 years
of age
70 years of age
and over
Income
$90,001–
$105,001–
$0–$90,000
$105,000
$140,000
$180,001–
$210,001–
$0–$180,000
$210,000
$280,000
Private health insurance rebate
Tier 1
Tier 2
$140,001 and
over
$280,001 and
over
Tier 3
27.82%†
18.55%†
9.27%†
0%
32.46%†
23.18%†
13.91%†
0%
37.09%†
27.82%†
18.55%†
Tax Rate
Private companies (other than life insurance companies)
Public companies (other than life insurance companies)
Companies (other than life insurance companies) that are RSA providers
– Standard component of taxable income
– RSA component of taxable income – FHSA component of taxable income (if any)
30%
30%
30%
15%
15%
Life insurance companies:
– Ordinary class of taxable income – Complying superannuation/FHSA class of taxable income * For taxable incomes exceeding $180,000, the 2% budget repair levy applies for that part of the taxable
income exceeding $180,000. Non-refundable tax offsets cannot be used to offset the budget repair levy;
only the foreign income tax offset can be used to offset against the levy.
Singles
Deceased estates — rates of tax (2015/16)
Type of entity
0%
Medicare levy surcharge
Percentage rate
0%
1%
1.25%
1.5%
* The families’ threshold is increased by $1,500 for each dependent child after the first. Families
include couples and single parent families.
† The private health insurance rebate is indexed annually by a rebate adjustment factor on 1 April
each year. Accordingly, these rebate figures are only applicable from 1 April 2015 to 31 March 2016.
30%
15%
Small business entities (2015/16)
Type of entity
Companies
Individuals (other than companies)
Tax Rate
28.5%
General individual rates but 5%
discount on tax payable up to
$1,000 a year (proposed)
Superannuation funds (2015/16)
Type of fund
Complying superannuation funds:
(i) Assessed on income, including realised capital gains and assessable
contributions*
(ii) Assessed on non-arm’s length income, private company dividends and
certain trust distributions
Non-complying superannuation funds
Assessed on income, including realised capital gains and assessable
contributions*
Complying ADFs:
(i) Assessed on income, including realised capital gains and assessable
contributions
(ii) Assessed on non-arm’s length income, private company dividends and
certain trust distributions
Non-complying ADFs:
Assessed on income, including realised capital gains and assessable
contributions
PSTs
(i) Assessed on income, including realised capital gains and assessable
contributions transferred to the PST
(ii) Assessed on non-arm’s length income, private company dividends and
certain trust distributions.
Tax rate
A trustee assessed on the net income of a trust estate of a person who died less than three
years before the end of the income year is taxed at the general individual rates.
A trustee assessed on the net income of a resident trust estate of a person who died more than
three years before the end of the year of income is taxed at the following rates for 2015/16:
Share of net income
(column 1) ($)
Personal tax offsets and
rebates
Dependant (Invalid and Carer)
Medical expenses
Private health insurance
(see above)
15%
Zone rebates
• Ordinary Zone A
47%
*Additional tax at the rate of 34% (complying funds) and 2% (non-complying funds) is payable
on no-Tax File Number (TFN) contributions income that is included in assessable contributions. A
tax offset is available if a TFN is provided to the fund within four years.
Maximum amount
$2,588
Depending on taxpayer’s and/
or family’s adjusted taxable
income, 20% of excess of net
medical expenses over $2,265
or 10% of excess over $5,343.
Note that transitional criteria
apply
Death benefit employment termination payments
Taxable income
Amount of offset
Component
Tax treatment
$0 - $37,000
$37,000-$66,667
> $66,667
$445
$445 - [(taxable income - $37,000) x 1.5%]
Nil
Tax free component
Taxable component
Tax-free
• Payment to a dependant
– amount up to ETP cap — tax-free
– amount over ETP cap — taxed at 45%*
Family situation
Maximum offset
Single
Couple (each)
Illness separated couple
$2,230
$1,602
$2,040
Shade-out threshold Cut-out threshold
$32,279
$28,974
$31,279
$50,119
$41,790
$47,599
Life benefit employment termination payments
Cut-out when (adjusted)
taxable income reaches
$338 + 50% of relevant rebate
amount*
• Ordinary Zone B
$57 + 20% of relevant rebate
amount*
• Special Zone A or B
$1,173 + 50% of relevant rebate
amount*
Defence Force
Same as for Ordinary Zone A
Income arrears
Applicable to lump sum
Medicare levy surcharge lump payments of income paid in
sum arrears
arrears
*”Relevant rebate amount” means the following rebates or notional rebates to which a taxpayer may
be entitled: DICTO (max $2,588); sole parent (max $1,607); child (max first child $376, second child
or subsequent children $282); and student (max $376).
Tax treatment
Tax free component
Taxable component
Tax-free
• Preservation age and over
– amount up to ETP cap* — taxed at a maximum rate of 15%
– amount over ETP cap* — taxed at 45%**
• Below preservation age
– amount up to ETP cap* — taxed at a maximum rate of 30%
– amount over ETP cap* — taxed at 45%**
* ETP cap amount: $195,000 (2015/16). For certain ETPs, the ETP cap works in conjunction with
a whole-of-income cap ($180,000)
** For taxable incomes exceeding $180,000, the 2% budget repair levy applies for that part of
the taxable income exceeding $180,000. Non-refundable tax offsets cannot be used to offset
the budget repair levy; only the foreign income tax offset can be used to offset against the levy.
Before 1 July 1960
1 July 1960 – 30 June 1961
1 July 1961 – 30 June 1962
1 July 1962 – 30 June 1963
1 July 1963 – 30 June 1964
On or after 1 July 1964
* For taxable incomes exceeding $180,000, the 2% budget repair levy applies for that part of
the taxable income exceeding $180,000. Non-refundable tax offsets cannot be used to offset
the budget repair levy; only the foreign income tax offset can be used to offset against the levy.
Income year
Base amount
Plus for each complete year of service
2015/16
$9,780
$4,891
Unused annual leave payment rules
Assessable
portion
Period of accrual of leave
Maximum
rate
General retirement or termination:
– accrual before 18 August 1993
100%
30%
– accrual on or after 18 August 1993
100%
Marginal
Genuine redundancy amount, early retirement scheme amount
or invalidity amount paid on or after 18 August 1993
100%
30%
Unused long service leave payment rules
Preservation age
Date of birth
• Payment to trustee of deceased estate
– taxed in the hands of the trustee, based on whether the
beneficiary is a dependant or non-dependant (see above)
Genuine redundancy and early retirement scheme payments
Component
$10,634
Dependent on age of person(s)
covered by policy and income
level(s)
• Payment to a non-dependant
– a mount up to ETP cap — taxed at a maximum rate of 30%
– amount over ETP cap — taxed at 45%*
Senior Australians and Pensioners Tax Offset (2015/16)
Taxation of Emloyment Related Payments
Personal tax offsets and rebates (2015/16)
47%
15%
50
19*
32.5
37
47
Personal tax offsets
47%
47%
% on excess (marginal rate)
416
Nil
670
127
37,000
7,030
80,000
21,005
180,000
58,005
* Income between $670 and $37,000 is taxed at a flat rate of 19%.
15%
47%
Tax on column 1
($)
Low income earner’s tax offset (2015/16)
Preservation age
55
56
57
58
59
60
Period of accrual of leave
Assessable
portion
Maximum rate
5%
Marginal
General retirement or termination:
– accrual before 16 August 1978
– accrual 16 August 1978 to 17 August 1993
100%
30%
– accrual on or after 18 August 1993
Genuine redundancy amount, early retirement
scheme amount or invalidity amount:
100%
Marginal
5%
Marginal
100%
30%
– accrual before 16 August 1978
– accrual on or after 16 August 1978
Non-residents
2015/16
Taxable income (column 1)
Tax on column 1
% on excess (marginal rate)
Nil
$80,000
$180,000
Nil
$26,000
$63,000
32.5
37
45*
* For taxable incomes exceeding $180,000, the 2% budget repair levy applies for that part of
the taxable income exceeding $180,000. Non-refundable tax offsets cannot be used to offset
the budget repair levy; only the foreign income tax offset can be used to offset against the levy.
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