Business advice
and accounting

Our purpose is to help you on your journey as you grow. Learn more about our history, partners and purpose.

Our purpose is to help you on your journey as you grow. Learn more about our history, partners and purpose.

Your partners for Business Service and Advisory, Taxation, Audit, Fraud and Risk.

Whatever your business, industry or family office, from local or international institutions we bring extensive expertise.

We're one team with a purpose and passion for what we do. Learn about our culture and career opportunities available to you.

Uncovering insights, trends and inspiration to help business grow in an ever-changing world.

We are always looking for ways to engage and give back to our community.

Telephone: +612 9283 1666
Email: admin@esvgroup.com.au

Level 13, 68 York Street,
Sydney NSW 2000

Why us

Our purpose is to help you on your journey as you grow. Learn more about our history, partners and purpose.

What we do

Your partners for Business Service and Advisory, Taxation, Audit, Fraud and Risk.

Who do we help

Whatever your business, industry or family office, from local or international institutions we bring extensive expertise.

Work with us

We're one team with a purpose and passion for what we do. Learn about our culture and career opportunities available to you.

What we think

Uncovering insights, trends and inspiration to help business grow in an ever-changing world.

Working to give back

We are always looking for ways to engage and give back to our community.

Contact us

Telephone: +612 9283 1666
Email: admin@esvgroup.com.au

Level 13, 68 York Street,
Sydney NSW 2000

Superannuation – Where are we at for 2019?

11 July 2018

by Geoff Vince

The start of the new financial year is often a time where individuals review their overall financial strategy and for many, superannuation savings forms a big part of this. Being aware of the relevant thresholds and rates at this time of the financial year is important, as it means you can effectively plan your strategy without being in breach of the thresholds.

The key contribution thresholds and tax rates are as follows:

Item Rate/Threshold
Concessional Contributions Cap $25,000
Tax rate on Concessional Contributions up to cap 15%
Non-Concessional Contributions Cap $100,000
Tax rate on Non-Concessional Contributions up to cap Nil
Division 293 tax threshold $250,000
Division 293 tax rate 15%

Concessional Contributions

From 1 July 2017, the maximum contribution that can be contributed to superannuation under the Concessional Contributions Cap is $25,000 for everyone. Prior concessional caps for those over 49 years old have now ceased.

This means that, except in limited circumstances, the maximum can be contributed to super including salary sacrificed amounts and the 9.5% employer super is $25,000 in a tax effective manner.

It should be noted that those with low superannuation balances (i.e. less than $500,000) are able to carry forward any unused cap for five years, such that if you do not contribute up to the full contribution cap for a year (up to five years) you may be able to contribute the unused cap in a salary sacrifice or personal deductible superannuation contribution in later years.

Non-Concessional Contributions

Non-Concessional Contributions are those contributions made from after tax money for which no tax deduction is claimed.

The threshold of the 2019 financial year remains at $100,000 per year and is only available to those with combined superannuation balances of less than $1.6 million at the end of the previous financial year.

Previous concessions that were available to “bring forward” non-concessional contributions for three years are still in place however are now dependent on age and the superannuation balance at the time the bring forward provisions.

Division 293 Tax Threshold

Division 293 tax is levied at 15% of the concessional contributions made up to the contributions cap amount, where the member earns more than $250,000 per year. This threshold was previously $300,000.

It is important to be mindful of these rates and thresholds as exceeding them can lead to penalties being applied by the ATO, which ultimately effects your superannuation balances.

To discuss how these thresholds impact your personal circumstances please do not hesitate to contact your ESV Engagement Partner.