Hi money gurus,
Just a quick non-property question that I thought some of the accountants or money gurus on here could answer quickly…
The government co-contribution to superannuation, I understand its based on salary and I’m aware the salary is including any reportable fringe benefits and any salary sacrificing, but is it TAXABLE income or total income? There’s quite a huge variation in my figures last year and this year due to some significant deductions, so just wondering if its the total income before any deductions taken into account, or that final figure that is used (taxable income + fringe benefits) used to calculate medicare levy and other benefits.
Cheers,
EmmaHi Emma
Rather than give it to you verbatim probably easier to refer you to the appropriate calculation in the ATO website and you can calculate yourself
http://www.ato.gov.au/individuals/content.aspx?menuid=44733&doc=/content/42616.htm&page=8&H8
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Only allowable business deductions are taken into account. I.e. a work-related expense or a rental property loss is not taken into account.
Alternatives to a personal co-contribution might include a contribution on behalf of your spouse, which can get you a tax offset or claiming contributions as a tax deduction (if employment income is <10% of total income)
Eligibility
You may be eligible for the super co-contribution if all of the following apply:
you make an eligible personal super contribution by during the income year into a complying super fund or RSA and don't claim a deduction for all of it
your total income (minus any allowable business deductions) for the income year is less than the higher income threshold
10% or more of your total income comes from eligible employment-related activities, carrying on a business or a combination of both
you are less than 71 years old at the end of the income year
you are not the holder of a temporary visa at any time during the income year, unless you are a New Zealand citizen or holder of a prescribed visa
you lodge your income tax return for the relevant income year.http://www.ato.gov.au/individuals/content.aspx?menuid=0&doc=/content/42616.htm&page=2&H2
Regards
Richard
Hi Emma,
It's calculated on taxable income + reportable fringe benefits + reportable super contributions + investment losses.Dan42 wrote:Hi Emma,
It's calculated on taxable income + reportable fringe benefits + reportable super contributions + investment losses.Hi Dan, that is the standard income test for most items such as medicare levy surcharge and certain tax offets.
The super co-contribution income test is more strict. Taxable income is not necessarily used, instead total income (less business deductions) is used in the income test calculation.
Last time I looked, it was gross income – not taxable income.
Only business deductions, or statutory partnership deductions (e.g. share of joint investment property deductions) allowed.
Neither individual investment deductions, nor employee deductions allowed !!
Better check on this one to see if anything has changed.
Cheers,
Rob
Rob G. wrote:Last time I looked, it was gross income – not taxable income.Only business deductions, or statutory partnership deductions (e.g. share of joint investment property deductions) allowed.
Neither individual investment deductions, nor employee deductions allowed !!
Better check on this one to see if anything has changed.
Cheers,
Rob
Hi Rob,
You're right. I mistakenly wrote taxable income when I meant assessable income.
thanks all for your comments and info, appreciate you taking the time to respond
Cheers,
Emma
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