Super Contributions - Deductions
From 2007/2008, deductions are no longer linited by age or amount contributed.An employer, or eligible person may claim a deduction for the full amount contributed in a financial year. However, additional taxes may apply if the contribution caps are exceeded.
1. The contribution must be for an eligible employee who is: engaged in producing assessable income of the employer; or an Australian resident engaged in the employer's business.
For this purpose, an eligible employee includes an employee within the expanded definition of the SGAA s12. In some cases deductions are allowed for former employees.
2. Certain rules continue to apply to deductions eg for employers a deduction can not be claimed for the SG charge and the rules relating to personal services may restrict deductions for an associated person (such as a spouse).
Super Contributions - Spouse Tax Offset
Spouse's Assessable Max. Rebatable Max. Offset
Income (AI) Conts. (MRC) 18% of lesser of:
$10,800 or less $3,000 MRC or actual conts
$10,801 - $13,799 $3,000 - (AI - $10,800) MRC or actual conts
$13,800 or more $0 $0
1.To qualify for the offset each spouse must be an Australian resident for tax purposes when the contribution is made. If the contributor is entitled to an employer tax deduction for the contribution, the spouse tax offset does not apply. Spouses do not include same sex partners or those permanently living apart.
2. Plus reportable fringe benefits. From 1/7/2009, the Government proposes to include salary sacrifice super contributions in income thresholds.
Super Contributions - Government Co-contribution
Assessable Income(AI) Personal Contribiution Co-contribution available
$30,342 or less Any amount Personal contribution x 1.5 (max $1,500)
$30,343 - $60,341 $0 - $1,000 An amount equal to the lesser of:
• Personal contributuion x 1.5, or
• $1,500 - [0.05 x (AI - $30,342)]
$30,343 - $60,341 $1,000 + $1,500 - [0.05 x (AI - $30,342)]
$60,342 or more Any amount Nil
1. To qualify for a co-contribution a person must make personal after-tax (undeducted) contributions; receive at least 10% of their accessible income plus reportable fringe benefits from eligible employment (including income from self-employment and/or carrying on a business); lodge an income tax return; be
< age 71 at the end of the financial year; andnot be a temporary resident for any part of the year.
2. Plus reportable fringe benefits. from 1/7/2009, the government proposes to include salary sacrifice super contributions in income thresholds.
(The above information has been sourced from MLC Facts and Figures 2008/2009).