Super rates and thresholds

CONTRIBUTIONS CAPS

Contributions caps	2010/11 financial year
Concessional contributions (CC) cap Under age 50 Age 50 and over (applies until 30/6/12)	$25,0001 $50,0002
Non-concessional contributions (NCC) cap	$150,0003
3 year bring forward NCC cap	$450,0004

1	Indexed in line with Average Weekly Ordinary Time Earnings (AWOTE) in increments of $5,000.
2	In the 2010/11 Commenwealth Budget, the Federal Government announced that the $50,000 cap will apply indefinitely from 1 July 2012 to members aged 50 or more with total superannuation balances less than $500,000. For members with higher balances, the $25,000 cap (indexed) will continue to apply.
3	This cap is equal to six times the concessional contributions cap and will change when the CC cap is indexed.
4	Applies to members aged under 65, who can bring forward two years' worth of the NCC cap and contribute three times the current year cap (i.e. $150,000 x 3) over any three-year period before the financial year of their 65th birthday.

For more information on the Contributions caps, click here .

CO-CONTRIBUTIONS THRESHOLDS AND RATES

Financial years	Matching rate	Maximum co-contribution
2009/10 and later financial years	100%	$1,000
2012/13 – 2013/141	125%1	$1,2501
2014/15 and later financial years1	150%1	$1,5001

1	In the 2010/11 Commonwealth Budget, the Federal Government announced that the Matching rate and Maximum Co-contribution would be retained at 100% and $1,000 (respectively) indefinitely.

Financial year	Lower income threshold1	Upper income threshold1
2010/11	$31,920	$61,920

1	In the 2010/11 Commonwealth Budget, the Federal Government announced that these thresholds would also be retained for 2011/12.

For more information on the Government co-contribution, click here.

INCOME TAX RATES FOR 2010/11

Taxable income	Marginal income tax rate 1
Up to $6,000	Nil
$6,001 - $37,000	15 cents for each $1 over $6,000
$37,001 - $80,000	30 cents for each $1 over $37,000
$80,001 - $180,000	37 cents for each $1 over $80,000
$180,001 and over	45 cents for each $1 over $180,000

1	Rates shown do not include the Medicare levy and are for Australian residents only.

PRESERVATION AGES

For persons born	Your retirement age is
on or before 30/6/1960	55 years
between 1/7/1960 and 30/6/1961	56 years
between 1/7/1961 and 30/6/1962	57 years
between 1/7/1962 and 30/6/1963	58 years
between 1/7/1963 and 30/6/1964	59 years
from 1/7/1964	60 years

SUPER LUMP SUM TAX - 2010/11

The following table shows the maximum rate of tax payable on the taxable and tax-free components of a super lump sum paid to a member aged less than 60 years from Maritime Super in 2010/11.

Age of recipient	Taxable component	Tax-free component
Under preservation age1	20% plus Medicare levy2	Nil
Preservation age to 59	Tax free up to the low rate threshold of $160,000+ for 2010/11. Amounts above the low rate threshold will be taxed at 15% plus Medicare levy2	Nil
Age 60 plus	Nil	Nil

1	Preservation age is 55 or higher for those born after 30 June 1960.
2	Medicare levy is 1.5% and applies to most Australian residents.

If you have not provided your TFN to Maritime Super and/or are a temporary resident higher tax rates will apply.

The above rates will not apply and your benefit will be paid to you tax free, if you super lump sum benefit represents your total benefit and is less than $200 and:

• you have terminated employment with your employer sponsor to the Fund and your preserved benefit at the time of termination is less than $200; or
• you were a ‘lost’ member who was later ‘found’ (i.e. you provide or Maritime Super finds a contact address for you).

Where you are diagnosed with a terminal illness, your lump sum benefit may also be paid to you tax free.

+ The application of the low rate threshold to super lump sums is capped. The low rate cap amount is reduced by any benefit taken which has counted towards the low rate threshold. This threshold is indexed in line with AWOTE in $5,000 increments.

SUPER PENSION TAX - 2010/11

The following table shows the maximum rate of tax payable on the taxable and tax-free components of a super benefit paid as a pension to a member aged less than 60 years from Maritime Super in 2010/11.

Age of recipient	Taxable component	Tax-free component
Under preservation age1	Marginal tax rates plus Medicare levy2 Tax offset of 15% is available if it is a disability super benefit	Nil
Preservation age to age 60	Marginal tax rates plus Medicare levy2 Tax offset of 15% is available	Nil
Age 60 plus	Nil	Nil

1	Preservation age is 55 or higher for those born on or after 1 July 1960.
2	Medicare levy is 1.5% and applies to most Australian residents.

If you have not provided your TFN to Maritime Super higher tax rates may apply.

DEATH BENEFIT LUMP SUM TAX - 2010/11

The following table shows the maximum rate of tax payable on a death benefit paid as a lump sum from Maritime Super in 2010/11.

Who paid to?	Taxable component	Tax-free component
Tax dependant	Tax free	Tax free
Non-tax Dependant1	Taxable element - 15% plus Medicare levy2 Untaxed element – 30% plus Medicare levy2	Tax free
Estate	Paid tax free to the estate. The legal personal representative of the estate must withhold tax if the benefit is paid to a non tax dependant.

1	If the beneficiary does not provide his/her TFN the taxable component will be taxed at the top marginal tax rate (45% for 2010/11) plus 1.5% Medicare levy.
2	Medicare levy is 1.5% and applies to most Australian residents.

A ‘tax dependant’ includes:

• your spouse (including an opposite or same-sex de facto partner) or former spouse (including an opposite or same-sex former de facto partner)
• your children under the age of 18 (including step-children, adopted children, children of a same-sex relationship, children of an opposite or same-sex de facto partner, ex-nuptial children, IVF children and children from certain surrogacy arrangements)
• anyone financially dependent on you at the time of your death; and
• anyone who is in an interdependency relationship with you at the time of your death.

An untaxed element may be payable if you have ever had insured benefits provided through the Fund.

DEATH BENEFIT PENSION TAX - 2010/11

The taxation of a death benefit paid as a pension depends on the age of both the deceased member and the benefit recipient. The following table is a summary of the maximum rate of tax applying on a deceased member’s death benefit if paid as a pension from Maritime Super.

Age of deceased member	Age of benefit recipient	Taxable component1	Tax-free component
Aged 60 and above	Any age	Nil	Nil
Below age 60	Aged 60 and above	Nil	Nil
Below age 60	Below age 60	Taxed element – Marginal tax rate (plus Medicare levy2) of beneficiary The beneficiary is entitled to a 15% tax-offset on the taxable component	Nil

1	Note that there are no untaxed elements in death benefits paid as pensions from Maritime Super
2	Medicare levy is 1.5% and applies to most Australian residents.

Death benefits can only be paid as a pension to a dependant (e.g. spouse, de facto partner, child or someone financially dependent or in an interdependency relationship with the deceased member). However, in the case of a child aged 18 or more, the benefit can only be paid as a pension if the child has financially dependent on the deceased member and not yet 25 or if they suffer a disability (as defined by legislation).

REDUNDANCY AND EARLY RETIREMENT EMPLOYER PAYMENTS – 2010/11

For persons	How calculated
Tax-free part of genuine redundancy payments and early retirement scheme payments	$8,126 plus $4,064 for each complete year of service

1	Indexed to Average Weekly Ordinary Time Earnings (AWOTE) each financial year.

AGE PENSION ELIGIBILITY AGE

Person born between	Eligible age for pension (Men)	Eligible age for pension (Women)
prior to 1/7/1935	65 years	60 years
1/7/35 and 31/12/1936	65 years	60.5 years
1/1/1937 and 30/6/1938	65 years	61 years
1/7/1938 and 31/12/1939	65 years	61.5 years
1/1/1940 and 30/6/1941	65 years	62 years
1/7/1941 and 31/12/1942	65 years	62.5 years
1/1/1943 and 30/6/1944	65 years	63 years
1/7/1944 and 31/12/1945	65 years	63.5 years
1/1/1946 and 30/6/1947	65 years	64 years
1/71947 and 31/12/1948	65 years	64.5 years
1/1/1949 and 30/06/1952	65 years	65 years
1/7/1952 – 31/12/1953	65 years 6 months	65 years 6 months
1/1/1954 – 30/6/1955	66 years	66 years
1/7/1955 – 31/12/1956	66 years 6 months	66 years 6 months
1/1/1957 onwards	67 years	67 years

BASIC AGE PENSION RATES
(current from 20 March 2010)

Status	Pension rate per fortnight
Single	$644.20*
Couple	$485.60*

*

Excludes Pension Supplement which pensioners may receive as an additional payment to the base pension. The maximum Pension Supplement combines the value of the Telephone Allowance, Utilities Allowance, the GST Supplement and Pharmaceutical Allowance and an additional amount, and is $56.90 per fortnight for singles and $85.80 per fortnight for couples, combined.

PENSION ASSETS TEST FOR HOMEOWNERS^*
(current from 1 July 2010)

Status	For full pension 1	For part pension 2
Single	Up to $181,750	Less than $649,250
Couple (combined)	Up to $258,000	Less than $963,000

*	These thresholds do not apply to pensioners who qualify to be paid a transitional rate (until the new rules provide an equal or better outcome). The transitional rate is based on the rules and payment rates (indexed to CPI) that applied before 20 September 2009.
1	Assets over these amounts reduce the pension by $1.50 per fortnight for each $1,000 of assets over the limit (single and couple combined).
2	These figures will be higher if you receive rental assistance with your payment.

PENSION ASSETS TEST FOR NON-HOMEOWNERS^*
(current from 1 July 2010)

Status	For full pension 1	For part pension 2
Single	Up to $313,250	Less than $780,750
Couple (combined)	Up to $389,500	Less than $1,094,500

*	These thresholds do not apply to pensioners who qualify to be paid a transitional rate (until the new rules provide an equal or better outcome). The transitional rate is based on the rules and payment rates (indexed to CPI) that applied before 20 September 2009.
1	Assets over these amounts reduce the pension by $1.50 per fortnight for each $1,000 of assets over the limit (single and couple combined).
2	These figures will be higher if you receive rental assistance with your payment.

PENSION INCOME TEST^*
(current from 1July 2010)

Status	Full pension per fortnight1	Part pension per fortnight2
Single (each)	Up to $146.00	Less than $1,548.20
Couple (combined)	Up to $256.00	Less than $2,370.00

*	These thresholds do not apply to pensioners who qualify to be paid a transitional rate (until the new rules provide an equal or better outcome). The transitional rate is based on the rules and payment rates (indexed to CPI) that applied before 20 September 2009.
1	Income over these amounts reduce the pension by 50 cents in the dollar (for singles) and 25 cents in the dollar each (for couples) (excluding transitional rate pensioners).
2	These figures will be higher if you receive rental assistance with your payment.

DEEMING RATES AND THRESHOLDS
(current from 1 July 2010)

Status	Deeming rate within threshold1	Deeming rate above threshold1
Single (each)	3% pa on the first $43,200 (of a single person’s total financial investments)	4.5%
Couple (one or both on a pension)	3% pa on first $72,000 (of a pensioner couple’s total financial investments)	4.5%
Couple (neither on a pension)	3% pa on the first $36,000 (on each of the couple’s financial investments)	4.5%

1	Indexed in line with CPI in July each year.

Disclaimer: the information above is believed to be accurate as at 8 July 2010. No responsibility is accepted for any error or omission or for any loss arising from its use.