Discussion in 'Superannuation, SMSF & Personal Insurance' started by austing, 13th May, 2008.
Do you know what this means?
Thanks - Gordon
I heard something along the lines of... you can not salary sacrifice to reduce your income below 150k limit to gain benefits. It led me to believe that you would still be able to salary sacrifice into super but it would not allow you to sacrifice income in order to achieve benefit thresholds. Anyone know more on this?
It makes sense in relation to Family Tax Benefit part B.
Though it's still not very clear.
PS Before making an investment decision speak to your FPA registered Financial Planner.
The following link expands on this. Yes it does seem to be in relation to eligibility for family benefits etc. Note neg gearing is also added back in to calculate income.
Crackdown on double-dipping ploy | smh.com.au
I'm not sure what they mean in relation to limit the scope of family trusts to claim losses?
Cheers - Gordon
This has big implications for some investment strategies. I certianly didn't hear this in the budget speech last night?? Must have missed it!
I think I know what this is about, it is a strategy I have been using the last few years.
Normally things like super co-contribution and family tax benefits are based on "taxable income".
Now they will be based on something else, "assessable income".
Eg. What I did this year;
Salary sacrifice into super: $15K
Taxable income: (65 - 15) $50K
Since my taxable income is $50K (after sal sac), I now qualify for the super co-contribution, as the cut-off for that is $58K and I am now under that cut-off.
With the new budget in the exact same circumstance I will not be eligible for the co-contribution, as they would base it on the "income" of $65K rather than the taxable income of $50K.
That's about the wrap of it Bella...
Budget Overview 2008 - Taxpayers Australia
I just noticed this comes into effect as of 1 July 2009. So the 'loophole' still exists for 2008-2009.
That's right, you've got right up until the end of 30th June 2009 to do a combo of salary sacrificing and increasing your govt co-contribution.
Looks like Kevin 07 is ridding all the howard perks..
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