Super Rates and Thresholds for 2011 Financial Year Released

The ATO has recently released the following rates and thresholds for superannuation contributions and pension income streams which will apply for 2011 Financial Year.

Superannuation Contributions Limits

Concessional Contributions Cap $25,000    (no change from 2009/10)
Non-concessional Contributions Cap $450,000   (no change from 2009/10)
CGT Non-concessional Contributions Cap $1,155,000  (an increase of $55,000 over the 2009/10 cap)
Low rate cap for super lump sums $160,000  (an increase of $10,000 over the 2009/10 cap)

The special concessional contribution cap of $50,000 will apply for taxpayers who are 50 or more at any time during 2010/11.  The special concessional contribution cap will cease to apply from 1 July 2012.  As this cap is not indexed there has been no change from 2009/10.

Minimum Annual Payment for Income Streams

For 2011 and subsequent financial years, the minimum annual payment for income streams (eg account-based pensions and transition to retirement pensions) will revert to their normal rates as follows:

Age bracket at 1 July % of the pension account balance at 1 July
Under age 65 4%
Age 65 to 74 5%
Age 75 to 79 6%
Age 80 to 84 7%
Age 85 to 89 9%
Age 90 to 94 11%
Age 95 or more 14%

The 50% reduction in the minimum rates only applied for 2008/09 and 2009/10 financial years.

The threshold levels for the Government Co-contribution for 2010/11 have yet to be released.