Market Wrap | 23.03.2012

2012/13 Superannuation Thresholds

The ATO has released the dollar values of various Superannuation Thresholds which will apply for 2012/13 financial year.

Concessional Contributions Cap

$25,000 – unchanged from 2011/12.   The Government has previously announced that the indexation of the concessional contributions cap will be “paused” for 2013/14 and will remain at $25.000. 

Legislation to implement this pause has now been introduced into Parliament.  The “Tax and Superannuation Laws Amendment (2012 Measures No 1) Bill, 2012” will specify the concessional contribution cap for 2013/14 to be $25,000.  As the Government noted, but for this pause, it is likely that the concessional contribution cap for 2013/14 would have been increased to $30,000 in accordance with the normal indexation process.  Now, the $30,000 concessional contribution cap will apply for 2014/15.

Concessional Contributions Cap for people 50 years or more

$50,000 – unchanged from 2011/12.  However this cap will only apply if the taxpayer’s super balance (aggregating all super balances of the member) is less than $500,000.  The precise details of how the $500,000 threshold will be determined has not, to date, been finalised.

Non-Concessional Contributions Cap

$150,000 – unchanged from 2011/12.  This cap will remain unchanged for 2013/14 as the Government will “pause” for one year, the indexation which would have otherwise most likely have occurred.

CGT Contributions Cap

$1,255,000 – an increase of $50,000 over the cap which applied for 2011/12.

Low rate cap amount

$175,000 – an increase of $10,000.  This cap applies to superannuation lump sums received between ages 55 and 60.

Pension Minimum Drawdowns

These drawdowns are discounted by 25% for the 2012/13 financial year from the normal rate.

Under age 65    3%  (normally 4%)

Age 65-74         3.75%  (normally 5%)

Age 75-79         4.5%  (normally 6%)

Age 80-84         5.25%  (normally 7%)

Age 85-89         6.75%  (normally 9%)

Age 90-94         8.25%  (normally 11%)

Age 95 +           10.5%  (normally 14%)

Indices:

The All Ordinaries Index has moved down over the past week decreasing 8 points (or -0.2%) since closing last Friday to 01:15 pm this Friday.

                                                                                                                                       

The rest of the world as measured by the MSCI index is down 16 points (or -1.2%) from closing last Friday to end of trade Thursday.