Calculations performed by Thomson Reuters based on the latest indexation factors from the Bureau of Statistics has indicated that the CGT cap amount for non-concessional contributions will increase to $1.480 million for 2018–19, up from $1.445 million for 2017–18.
Concessional contribution caps, on the other hand, will remain unchanged at $25,000 for 2018–19.
Thomson Reuters senior tax writer Stuart Jones said that as the concessional cap is now only indexed in $2,500 increments, so the average weekly ordinary time earnings (AWOTE) indexation factor of 1.024 for 20180–19 was insufficient to trigger an increase to $27,500.
“At this current rate of wages growth, the concessional cap is not expected to increase to $27,500 until 2023,” Mr Jones said.
The non-concessional contributions cap is also unchanged at $100,000 for 2018–19.
While the super guarantee is frozen at 9.5 per cent until 1 July 2021, he said, the "maximum contribution base" will rise to $54,030 per quarter for 2018–19, up from $52,760 for 2017–18.
“An employer is not required to provide the minimum super guarantee support for that part of an employee’s ordinary time earnings (OTE) above the quarterly maximum contribution base,” the senior tax writer said.
“This quarterly maximum represents a per annum equivalent of $216,120 for 2018–19.”
The government co-contribution lower income threshold is set to increase to $37,697 for 2018–19, Mr Jones said, while the higher income threshold is $52,697.
The superannuation lump sum low rate cap and ETP cap will also increase to $205,000 for 2018–19, up from $200,000, while the untaxed plan cap will increase to $1.480 million.
“The tax-free amount for a genuine redundancy will increase to $10,399 (base amount) for 2018–19 plus $5,200 for each whole year of service,” Mr Jones said.
The general transfer balance cap will remain unchanged at $1.6 million for 2018–19.
“This also means that the ‘defined benefit income cap’ of $100,000 p.a. is unchanged for 2018–19,” the senior tax writer said.