2009 Federal Budget Summary
A Quick Summary of the Major Points :
-
The limit for tax deductible concessional contributions effective from 2009/2010, will be reduced to $25,000 per annum (previously $50,000) and a transitional limit for those aged 50 and over will be reduced to $50,000 per annum (previously $100,000).
Example: A self employed person or an employee (under the age of 50) can currently salary sacrifice or contribute $50,000 for the 2008/9 financial year. For the 2009/10 financial year this has now been reduced to a limit of $25,000.
Example: A self employed person or an employee (over the age of 50) can currently salary sacrifice or contribute $100,000 for the 2008/9 financial year, however, for the 2009/10 financial year this has now been reduced to a limit of $50,000
Importantly, there is still the opportunity this financial year to make a tax deductible contribution of $50,000 or $100,000 (over age 50), before the reduction in these limits.
Additionally, the opportunity to make an after tax contribution (non-concessional contribution) of up to $150,000 remains unchanged, not to mention the ability to bring forward 2 years and contribute up to $450,000. -
Importantly, there is still the opportunity to still get the 150% matching contribution for contributions up to $1,000 for the current 2008/09 financial year.
From 1 July 2009, the matching rate for the co-contribution will be reduced to 100% from 150%. Therefore, a personal after tax contribution of up to $1,000 will be eligible for an additional government contribution of up to $1,000. Hence only a 100% return which was previously a 150% return.
Please note: Eligibility for the co-contribution is limited to those with an assessable income less than $60,342. With eligibility being pro-rated for those with assessable incomes between $30,342 and $60,342. Those earning less than $30,342 are eligible for the full contribution.
Example: An employee earning $30,000 makes a personal contribution of $1,000 to their superannuation fund for the 2008/09 financial year. They would receive an additional $1,500 from the Government. For the 2009/10 financial year they will receive $1,000. -
The qualifying age for the Age Pension and the Commonwealth Seniors health Card for men and women will increase to 67 years of age from July 2023.
The qualifying age will begin to increase from July 2017, by six months every two years.
Please contact a Complete Financial Balance financial advisor for more information about how these changes may affect you.
Disclaimer: This website does not provide financial or investment advice. The information provided does not take into account your personal situation. Please consult your CFB adviser before making any insurance or investment decisions.
