SUPERCentral Pty Ltd. The company's legal needs in superannuation, estate planning and financial services are exclusively provided by TOWNSENDS BUSINESS & CORPORATE LAWYERS. The leading edge SUPERCentral system was granted an Australian patent in 2008 and is monitored and protected.
SUPERCentral is Australia's leading online SMSF Deed Update Service specifically designed to assist Accountants, Financial Advisers and SMSF Administrators save time and money.
Back Issue Newsletters
Media
- Managing business succession - Professional Planner by Tony Negline
- Ethical super rules against sole purpose test - Investor Daily
- Bare trusts should use corporate trustees - Investor Daily
- Loans the lifeblood of self-managed funds - The Australian by Tony Negline
- Smart gearing will help cover your assets - The Australian by Tony Negline
- Clients forgiving towards advisers over losses - Money Management by Peter Townsend
- SMSFs vs. POFs - Super Living by Peter Townsend
- The Super Game - The Australian
- Retirees precious capital - Sydney Morning Herald
- Super pension in a financial downturn - SMSF by Michael Hallinan
Co-Contribution Eligibility Threshold
20/04/2009
Currently, a person will be entitled to a Government Co-Contribution in respect of a tax year if they satisfy a number of conditions (including being under the age of 71 and having lodged a tax return for the relevant tax year).
In particular, the eligibility for, and the amount of the co-contribution, is affected by the amount of the total income of the taxpayer.
If the total income exceeds a lower threshold ($30,342 for 2008/09), the amount of the co-contribution will be reduced inregard to the amount of the excess over the lower threshold.
If the total income exceeds a higher threshold ($60,342 for 2008/09), the entitlement to a co-contribution will cease entirely .
Currently the total income for this purpose is the aggregate of the assessable income of the person and their reportable fringe benefits.
A person who substitutes salary sacrifice contributions for employment income will be able to reduce their total income and therefore may be eligible for co-contribution payments.
For 2009/10 and subsequent tax years, the definition of “total income” will include the total of the salary sacrifice super contributions of the person received in the relevant tax year.
This change will be achieved by amending s8(1) of the Superannuation (Government Co-Contribution for Low Income Earners) Act, 2003 to “add back” the value of reportable employer superannuation contributions (ie salary sacrifice contributions).