Income Test Reforms Now Enacted

20/04/2009

One of the changes arising from the 2008 Budget was the Government’s decision to harmonise (ie make tougher) the income tests used in various tax legislation as a precondition for tax concessions.

These changes have now been enacted and will apply to the 2009/10 and following tax years.  The relevant legislation is Tax Laws Amendment (2009 Measures No 1) Act 2009 which received Royal Assent on 26 March 2009.

The legislation will affect super in two main ways.  Firstly, it will affect the operation of the “10% substantially self employed” deduction rule.  Secondly, it will affect the entitlement to the Government Co-Contribution.

 


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