Superannuation rates and thresholds for 2012-13

The Tax Office has announced some of the key superannuation rates and thresholds for 2012-13. These indexed rates and thresholds cover:

• the superannuation contributions caps;
• the threshold amounts for concessionally taxed superannuation lump sums; and
• employment termination payments.

This article summarises the proposals.

Contribution caps

The concessional contributions cap of $25,000 and the non-concessional contributions cap of $150,000, remain unchanged for 2012-13. This is because indexation only applies in increments of $5,000 (rounded down). The $25,000 cap will not increase to $30,000 until Average Weekly Ordinary Times Earnings (AWOTE) has increased by at least 20%..

The CGT cap amount for contributions has been increased to $1.255m for 2012-13 (up from $1.205m for 2011-12). A taxpayer can exclude superannuation contributions from his or her non-concessional contributions cap up to this indexed lifetime CGT cap amount.

Superannuation benefits

The following thresholds have been increased for 2012-13:

• Superannuation lump sum low rate cap - $175,000 (up from $165,000 for 2011-12). This low rate cap amount is reduced by any amount previously applied to the low rate threshold.
• Untaxed plan cap - $1.255m (up from $1.205m for 2011-12). Where benefits have not been subject to contributions tax in a superannuation fund (ie: an element untaxed in the fund) a $1.255m untaxed plan cap applies for 2012-13.

Employment termination payments

Employment termination payments (ETPs) made in consequence of termination of employment are subject to the following indexed caps for 2012-13:

• ETP cap amount - $175,000 (up from $165,000 for 2011-12). The ETP cap amount is taxed concessionally for both life benefit termination payments and death benefit termination payments.
• Transitional ETP cap amount - The $1m upper cap amount is not indexed. It applies where an entitlement to a termination payment was established as at 9 May 2006 and the payment is made before 30 June 2012.

More information

You can read the document, Key superannuation rates and thresholds (dated 24 February 2012), here on the ATO website.

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