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How will things change from 1 July 2009?

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How will things change from 1 July 2009?

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10

From 1 July 2009, voluntary salary sacrifice contributions will be included as part of your total income when assessing your eligibility for the co-contribution. Lets look at Garys situation before and after 1 July 2009. Gary only has income from his employment so doesnt have any reportable fringe benefits. 2008/2009 financial year2009/2010 financial yearSalary $65,000$65,000Salary sacrifice$35,000$35,000Assessable income$30,000$30,000Total income$30,000$65,000Personal contribution$1,000$1,000Co-contribution$1,500$0 As the salary sacrifice amount will be included in his total income, Gary will not be eligible for the co-contribution after 1 July 2009. This occurs regardless of the value of his after-tax contributions to his super because he has exceeded the maximum income at which the co-contribution cuts out. The Government has also announced a temporary reduction in the rate of the Government’s co-contribution payments to apply from 1 July 2009. The rate of co-contribution over the n

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