Australia: Superannuation EOFY planning

Wealth Management Update: Winter 2014
Last Updated: 20 June 2014

Welcome to our winter Wealth Management update.

With 30 June almost upon us, a reminder of key superannuation thresholds and contribution strategies follows:

Concessional Contribution Caps

Concessional contributions are taxed within a super fund at 15%. The Concessional Contribution caps are as follows:

Age FY13/14 FY13/14 FY14/15
Under 50 $25,000 $30,000
50-59 $25,000 $35,000
60+ $35,000 $35,000 $35,000

Concessional contributions include contributions for which the individual or an employer is allowed a tax deduction. This includes the 9.25% compulsory SG payments, salary sacrifice contributions and personal contributions for which an individual is entitled to claim a tax deduction (usually where less than 10% of an individual's assessable income plus reportable fringe benefits for the income year came from being an employee).

Contributions Tax for higher income earners

From 1 July 2012, individuals who earn $300,000 or more per annum pay an additional 15% tax on concessional contributions. This increases the tax on their concessional contributions to 30%.

Non-Concessional Contribution Caps

Non-concessional contributions include personal contributions for which you are not eligible to claim an income tax deduction. The non-concessional contribution caps are as follows:

Age FY13/14 FY14/15
Under 65 $150,000** $180,000**
65+ $150,000 $180,000

** Individuals under 65 years of age may be able to bring forward a further 2 years' worth of contributions (a total of $450,000 in FY13/14). An individual who made a contribution of $450,000 in year 1 would not be able to make a further non-concessional contribution until year 4.

Superannuation Co-Contribution

If your total income for tax purposes is $33,516 or less, the Government will match your non-concessional super contributions by up to 50 cents in every dollar to a maximum of $500. The co-contribution amount is reduced by 3.33 cents for every dollar of income above $33,516 (and cuts out altogether above $48,516).

The main eligibility criteria are as follows:

  • you must make an eligible personal super contribution during the income year into a complying super fund and don't claim a deduction for all of it (a non-concessional contribution)
  • your total income (minus any allowable business deductions) for the income year is less than $48,516
  • 10% or more of your total income comes from eligible employment-related activities, carrying on a business or a combination of both
  • you are less than 71 years old at the end of the income year


Jan works part time and earns $20,000 per annum. She contributes $1,000 after tax to her super fund. The Government will add a further $500 to her super fund soon after her tax return is lodged and processed.

Low Income Superannuation Contribution

The Government will provide a contribution equal to 15% of concessional contributions made, up to $3,333, for low income earners with an adjusted taxable income of up to $37,000. The maximum contribution paid will be $500. The individual must satisfy an income test in which 10% or more of their total income is derived from business or employment. If you lodge an income tax return, you will receive your LISC in your super account after the ATO have processed your income tax return and received information from your super fund about your super contributions. The LISC is designed to refund some of the tax paid on the concessional contributions of low income earners.


Dawn works part time and earns $20,000 per annum. Her employer makes the compulsory 9.25% Superannuation Guarantee (SG) contribution of $1,850 over the year. As the compulsory SG contribution is classified as a concessional contribution, the Government will provide Dawn with an extra $277.50 contribution to her fund.

Superannuation Spouse Contribution

Taxpayers can still claim an 18% tax offset on non-concessional superannuation contributions of up to $3,000 made on behalf of a non-working or low income spouse. The maximum tax offset of $540 is available where the recipient spouse's income (total assessable income plus reportable fringe benefits) is less than $10,800. The tax offset reduces to zero where the recipient spouse's income exceeds $13,799. Contributions you make on behalf of your spouse will count towards their non-concessional contributions cap.


Joel makes a $3,000 after tax contribution to his wife's super fund. His wife does not work and has no other income. As a result of this contribution Joel is entitled to a $540 tax offset in his tax return that will help reduce his tax liability.

Pension Drawdown Rates

As a reminder, individuals drawing a pension from their super funds need to ensure they are drawing at least the minimum required amount this financial year, which is calculated as a percentage of the 30 June 2013 account balance as follows:

Age Minimum
Under 65 4.00% 4.00%
65-74 5.00% 5.00%
75-79 6.00% 6.00%
80-84 7.00% 7.00%
85-89 9.00% 9.00%
90-94 11.00% 11.00%
95+ 14.00% 14.00%


Brad is 70 years of age and had a pension phase balance of $500,000 in his super fund as at 30 June 2013. Geoff must draw a minimum of 5.00% of the account balance ($25,000) before 30 June 2014 to ensure he complies with the superannuation rules.

This publication is issued by Moore Stephens Australia Pty Limited ACN 062 181 846 (Moore Stephens Australia) exclusively for the general information of clients and staff of Moore Stephens Australia and the clients and staff of all affiliated independent accounting firms (and their related service entities) licensed to operate under the name Moore Stephens within Australia (Australian Member). The material contained in this publication is in the nature of general comment and information only and is not advice. The material should not be relied upon. Moore Stephens Australia, any Australian Member, any related entity of those persons, or any of their officers employees or representatives, will not be liable for any loss or damage arising out of or in connection with the material contained in this publication. Copyright © 2014 Moore Stephens Australia Pty Limited. All rights reserved.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Mondaq Advice Centre (MACs)
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.