Super arrangements released

Monday, 12 June, 2000 - 22:00
THE Australian Tax Office has announced changes that will apply from 1 July 2000 to superannuation arrangements and thresholds.

The lump sum reasonable benefit limit has risen to $506,092 from $485,692, while the pension RBL has risen to $1,012,181 from $971,382.

The maximum age-based deduction limits for employer superannuation contributions are now $11,388 for those under thirty-five, $31,631 for employees aged thirty-five to forty-nine and $78,445 for those aged at least fifty.

The concessional components of a bona fide redundancy payment and approved early retirement payment have been increased. The maximum amount that may be taken free of tax will be $5,062 plus $2,531 for each completed year of service.

The tax-free threshold of the post 30 June 1983 component of an eligible termination payment has been increased to $100,696 from its previous level of $96,637.

For superannuation guarantee charge purposes, the maximum employee’s earnings base increased to $26,300 per quarter.

The contributions required for SGC purposes have been increased to 8 per cent until 2002/2003 when the rate will increase to 9 per cent.

Superannuation surcharge arrangements have also been

modified.