Salary Sacrifice to Super
As announced in the May 2008 Federal Budget, from 1st July 2009 income tests used to determine eligibility for a range of government financial benefits will change. From this date, salary sacrified contributions to superannuation will be counted as income for the following:
- Family assistance
- Child support
- Eligibility for the superannuation co-contribution
- Various tax offsets: and
- Medicare levy surcharge
Therefore, if you are in a salary sacrifice arrangement beware that these payments, whilst not counted towards the above thresholds for this current financial year, will be counted from 1st July 2009 onwards. Accordingly, if you were motivated to enter into a salary sacrifice arrangement in order to qualify (or in the case of Medicare levy surcharge, avoid) one of the earlier payments, you may wish to review with your advisor the benefits of continuing such an arrangement post 1st July, 2009.
For more information ring (02) 4731-1405 A Grade Tax Accountants Penrith for tax advice, planning and all your accounting and taxation needs.
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