2009 Federal Budget
Last Updated : 23 Feb 2010
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The May 12 2009 Budget announcement outlined a few key changes to superannuation which are summarised below:

New Contribution limits
From 1 July 2009, new contribution limits will apply as follows:

Concessional Contributions

  • Age Less than 50: $25,000 p.a.
    Note: this cap will be indexed to Average Weekly Ordinary Time Earnings (AWOTE) in increments of $5,000
  • Age 50 & over: $50,000 p.a.
    Note: this cap will not be indexed and will remain in place until July 2012 when the $25,000 per annum (indexed) cap will apply to all ages.

Non-Concessional Contributions

  • The non-concessional contribution cap is set at six times the lower concessional contribution cap of $25,000. As such, from 1 July 2009 the non-concessional contribution cap will remain at $150,000 p.a.
  • As per the current rules, for those individuals under age 65 who may wish to make a larger one off payment (i.e. above $150,000), an averaging provision of $450,000 will be permitted over a three year period.
  • Note: the previously announced indexation of the non-concessional contribution caps to $165,000 and $495,000, respectively, has been revoked. concessional contribution caps to $165,000 and $495,000, respectively, has been revoked. >

Government Co-contribution Benefit
From 1 July 2009, the maximum Government co-contribution payment will temporarily reduce from 150% of contributions to 100% of contributions as follows:

Financial Year/s Maximum Payment Benefit
2009/10 - 2011/12 100% (up to $1,000)
2012/13 - 2013/14 125% (up to $1,250)
2014/15 150% (up to $1,500)

New minimum Account-based pension draw down limits
In February 2009 the minimum pension draw down amounts were reduced by half for the remainder of the 2008/09 financial year. These temporary minimum amounts have been extended to the 2009/10 year. As such, for the 2009/10 year minimum pension draw down limits will be as follows:

Age Minimum % Minimum %
with drawdown relief
Under 65 4 % 2 %
65 - 74 5 % 2.5 %
75 - 79 6 % 3 %
80 - 84 7 % 3.5 %
85 - 89 8 % 4 %
90 - 95 11 % 5.5 %
95 and over 14 % 7 %

Please note, this minimum change is not automatic and members will need to inform AGEST if they would like to alter this to the 50% of minimum amount.


Superannuation rules left unchanged
Despite some recent speculation, no changes have been announced regarding transition to retirement pensions or the rate of contribution tax (which remains at 15%).

AGEST has also prepared a fact sheet on these changes. You can download it from our Fact Sheets web page.


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This website, and documents linked to it, provides information of a general nature. It has been prepared without taking into account your particular needs, circumstances and objectives. You should assess your own financial situation and read our combined Product Disclosure Statement and Financial Services Guide before making an investment decision. The Trustee of AGEST (Australian Government Employees Superannuation Trust) is AGEST Super Pty Ltd, ABN 44 007 390 392, SPIN AGE0101AU and AFSL 233707, RSE Licence L0000383, RSE Registration R1001556.