Tips & Traps
Expanded “Income” Definition
The legislation in relation to the Expanded “Income” definition is now in force and took effect from 1st July 2009. In a nutshell it widens the definition of income to include salary-sacrifice contributions and net investment losses when working out eligibility for various taxation and superannuation concessions and government benefits.
Areas affected by the changes:
- Government Co-contribution eligibility thresholds
- Spouse Super Contributions offset
- Using the 10% rule for super contributions eligibility
- Income Test for individuals under Age Pension age
- Family Tax Benefit, Child Care Benefit, Baby Bonus
- Commonwealth Seniors Health Care card
Pension Bonus Scheme is OUT, New Work Bonus is IN
The Pension Bonus Scheme has closed to new entrants on 20/09/09. However those who attain Age Pension age before that date have still a window of opportunity for 13 weeks (from the date they reach pension age) to register under the old scheme.