Tax rates

Income tax rates

Personal rates 2009/10 Taxable income Tax payable* 0–$6,000 Nil $6,001–$35,000 15% $35,001–$80,000 30% $80,001–$180,000 38% $180,001+ 45%

Business rates Complying superannuation Fund 15% Non-complying superannuation Fund 45% Company 30%

Contribution caps
The amount of concessional (employer, pre-tax and self-employed) and non-concessional (post-tax) contributions that will benefit from concessional tax treatment is capped. Contributions in excess of these caps will be taxed at the top marginal tax rate. This tax will be imposed on the individual, who will be able to withdraw from their super fund an amount equal to their tax liability. Superannuation funds are prohibited from accepting contributions in excess of the maximum allowable non-concessional contributions, paid in one lump sum, at any time during a financial year.

The following table details the relevant contribution caps, transitional arrangements, applicable tax rates and exemptions applying from 1 July 2009.

Concessional contributions (Employer, pre-tax & self-employed) Non-concessional contributions (Member post-tax) Annual contributions cap $25,000* The cap applies per person, not per contributing employer. Contributions above the concessional contributions cap will count towards the non-concessional contributions cap. $150,000 The Government co-contribution is not included in the cap. This cap is three times the concessional contributions cap and increases as that cap is indexed. Transitional and other arrangements $50,000 The cap is increased to $50,000 annually for those aged 50 years or over on the last day of a financial year from 1 July 2009 to 30 June 2012. For example, if you turn 50 on 1 January 2011 you will be able to make $50,000 of contributions in the 2010/11 and 2011/12 financial years. From 1 July 2012 the maximum concessional contributions per annum will return to the indexed $25,000 amount. $450,000 If you are under age 65 at any time in a financial year you will be able to make up to $450,000 of contributions in one financial year. However, contributions in excess of the cap in one financial year will reduce the non-concessional contributions for the next two financial years. Contributions tax (levied to the Fund) 15% Nil Additional tax on amounts in excess of the contributions cap (levied to the individual) 31.5% (When combined with the contributions tax paid by the Fund, the total tax payable will amount to 46.5%.) 46.5% Exemptions from the cap N/A Proceeds from the disposal of eligible small business assets up to a lifetime limit of $1.1 million (indexed); and Proceeds from a settlement for an injury resulting in permanent disablement.

Tax on lump sum benefits Component Age under 55 Age 55 to 59 Age 60 and over Tax-free component* Tax-free Tax-free Tax-free Taxable component# Taxed at 20% The first $150,000† is tax-free and the balance taxed at a maximum of 15%. Tax-free

The components of benefit payments will be withdrawn in the same proportion as your tax-free and taxable components. The relevant proportions will be calculated at the date your lump sum benefit is paid or your superannuation income stream commences.