From 1 July 2018, some of the biggest changes to super rules since 2007 commenced, including a raft of new acronyms (TBAR, TBA, TBC, etc). We have put together a summary of the major changes.

Essential super ready reckoner


How you get money into super

Concessional (pre-tax) contributions Non-concessional (after tax) contributions
Compulsory employer contributions (SG) Personal contribution
Salary sacrifice Spouse contribution
Personal tax deductible contributions1 Amounts that exceed your concessional cap

1 From 1 July 2018 the 10% rule no longer applies; to claim a tax deduction you must complete a s290-170 ATO form



Caps on how much money you can get into super

Age Concessional cap Non-concessional cap
75 or over $0 $0
65 to 75 $25,0002 $100,0002
Less than 65 & super balance > $1.6m $25,000 $0
Less than 65 & super balance $1.3m to $1.6m $25,000 Various3
Less than 65 & super balance > $1.3m $25,000 $100,000 or bring forward 3 x $100,000

2 Need to meet the works test of working 40 hours in 30 consecutive days in a financial year

3 Concessional contribution and the bring forward amounts scale down as get closer to $1.6m


Tax on your concessional contributions

Adjusted taxable income (ATI)4 Tax rate
> $250,000 30%
< $250,000 15%

4 ATI = taxable income + reportable fringe benefits + investment losses – reportable super contributions (eg salary sacrifice amounts) + concessional contributions


Age you can access your super

Date of birth Preservation age
Before 1 July 1960 51
1 July 1960 to 30 June 1961 56
1 July 1961 to 30 June 1962 57
1 July 1962 to 30 June 1963 58
1 July 1963 to 30 June 1964 59
After 1 July 1964 60


When you can access your super

Reach your preservation age & retire Temporary or permanent disability
Cease employment & aged > 60 Leave Australia permanently
Reach age 65 or older Financial hardship or compassionate grounds
Reach your preservation age & transition to retirement Cease employment and < $200 in super
Death Terminal medical condition


How much you must to take out of super

Age at 1 July that financial year Minimum withdrawal
Under 65 4%
64 to 74 5%
75 to 79 6%
80 to 84 7%
85 to 89 9%
90 to 94 11%
95 and over 14%
Maximum withdraw if in transition to retirement is 10%


Tax on your super if you die

Who receives the super and type Tax rate
Reversionary pension to spouse or financial dependant5 0%
Lump sum to spouse or financial dependant 0%
Lump sum to non-dependant tax free component 0%
Lump sum to non-dependant taxable component taxed element6 15%
Lump sum to non-dependant taxable component untaxed element6 30%

5 Where either the deceased or spouse/dependant aged 60 or over

6 This tax highlights the importance of Quantum Financial’s estate planning advice


New $1.6m transfer balance cap7

Credits (used towards your cap)8 Debits (come off your cap)
Value of super interest supporting income stream from 1 July 2017 Commutation of a super income stream
Commencement of new income streams from 1 July 2017 onwards Structured settlement payments contributed to super (eg personal injury payments)
Value of a reversionary pension if you become entitled to one9 Certain payments from family law splits, fraud or void transaction
Notional earnings accruing to excess transfer balance amounts 15%

7 Investment gains and losses do not alter the transfer balance cap. Income stream payments do not change the transfer balance cap either.

8 A defined benefit (DB) pension or annuity’s special value is the annual entitlement x 16. For a non-commutable life expectancy or market linked product, the special value is the annual entitlement x the product’s remaining term.

9 You have 12 months to deal with reversionary pension before it counts as a credit towards your cap