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Taxation Information

Superannuation Preservation Rules | Superannuation Guarantee | Superannuation Lump Sum Tax Rates |
Personal Income Tax Rates 2007-08 | Superannuation Surcharge

Income Tax Concessions for Superannuation Contributions

Previously, employees earning less than a certain amount could claim a tax rebate for personal contributions made to a superannuation fund. From 1 July 2005, this rebate was replaced with the Government Co-contributions. Please refer to the co-contribution information page on this site, or access the ATO website for further details.

NTGPASS does not accept pre-tax superannuation contributions from retained members or as a result of employment outside the NT Public Service. As a result, tax deductible contributions cannot be made to NTGPASS.

Click here for information about the Government Co-contributions

Superannuation Preservation Rules

Generally, superannuation benefits fall into three categories:

• - preserved benefits;
• - non-preserved benefits; and
• - unrestricted non-preserved benefits.

Preserved benefits - these are benefits which must be retained in the fund until the member’s ‘retirement’ on or after reaching the member’s ‘preservation age’. If a person aged under 55 years of age terminates employment, their preserved benefits cannot be paid to them.

Restricted non-preserved benefits - this is a benefit which, although not preserved, cannot be cashed until the member satisfies a condition of release (for example, termination of employment in an employer superannuation scheme).

Unrestricted non-preserved benefits - this is a benefit which does not require the fulfilment of a condition of release and may be paid upon demand by the member. An example of this type of benefit is one where the member has previously satisfied a condition of release and decided to keep the monies in the superannuation fund.

From 1 July 1999, all contributions made by or on behalf of a member to a regulated superannuation fund and all earnings in respect of the periods on or after 1 July 1999 are preserved. This is regardless of their source.

Access to preserved benefits depends on your preservation age. Your preservation age depends on your date of birth, as follows:

Date of birth	Preservation age
Before 1 July 1960	55
1 July 1960 – 30 June 1961	56
1 July 1961 – 30 June 1962	57
1 July 1962 – 30 June 1963	58
1 July 1963 – 30 June 1964	59
After 30 June 1964	60

Source: Australian Tax Office (www.ato.gov.au).

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Superannuation Guarantee

Minimum Level of Employer Superannuation Suppport
Financial Year	Percentage of Ordinary Time Earnings
1998-99	7%
1999-00	7%
2000-01	8%
2001-02	8%
2002-03 (onwards)	9%

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Superannuation Lump Sum Tax Rates

Tax Free Component	0%
Taxable Component
Taxed Element
Under age 55	20%
Age 55 - 59	0% up to LTT*
Age 60 and over	0%
Untaxed Element
Under age 55	30% up to $1 million
Age 55 - 59	15% up to LTT* 30% over LTT* up to $1 million 45% over $1 million
Age 60 and over	15% up to $1 million 45% over $1 million

Note: tax rates do not include Medicare Levy (1.5%)

*LTT: Low Tax Threshold for 2007-08 is $140,000 and is indexed each financial year to Average Weekly Ordinary Times Earnings in $5,000 amounts.

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Personal Income Tax Rates 2007-08

Taxable Income	Marginal Income Tax Rate
Up to $6,000	Nil
$6,001 to $30,000	15%
$30,001 to $75,000	30%
$75,001 to $150,000	40%
Excess over $150,000	45%

Note: rates do not include the Medicare Levy of 1.5% of taxable income.

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Superannuation Surcharge

The superannuation surcharge was a Commonwealth Government tax of up to 15% on the employer contributions to superannuation for high income earners.

The Commonwealth Government has since introduced the Superannuation Laws Amendment (Abolition of Surcharge) Act 2005. From 1 July 2005, the surcharge will no longer apply. However, existing surcharge debts remain payable and attract interest at the Commonwealth 10 year Bond rate. 

For the period from 1 July 2003 to 30 June 2005, the way in which the surcharge rate is calculated is as follows. The surcharge rate depends upon a person's Adjusted Taxable Income (ATI) in reference to 'lower income amounts' and 'higher income amounts'.

Previously, the lower and higher income amounts were known as 'surcharge thresholds'. Surcharge thresholds for previous years and other information on surcharge can be obtained from the ATO website.

ATI - lower income amount [A] = surcharge rate

 

Financial Year	Lower Income Amount	Higher Income Amount	A
2005-06	surcharge abolished	surcharge abolished	0
2004-05	$99,710	$121,075	1709.20000
2003-04	$94,691	$114,981	1399.31034
Where A is:	higher income amount - lower income amount maximum surcharge rate x 100

 

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