Spouse Super 2010

Make a contribution into your spouse’s super fund before 30 June 2010 and you may qualify for a tax offset of up to $540.

The $540 tax offset is equivalent to receiving an 18% after-tax return (ie $540 tax offset divided by $3,000 spouse contribution) and is a very tax effective exercise.

Your spouse must earn an income of less than $13,800 for you to receive a tax offset.

Please read the attached Update for more information.

Super Co Contribution 2010

If you make a personal super contribution before 30 June 2010 then you may receive a government funded Super Co-Contribution of up to $1,000.

You must earn an income of less than $61,920 to receive a Super Co-contribution.

Importantly, this is the first financial year that “reportable super” such as salary sacrifice and tax deductible super has been included in the definition of income.

Many of you who have previously qualified for Super Co-contributions will not be eligible for a Super Co-contribution this year!

Please read the attached Update for more information.

Budget 2010

Despite the hype, the 2010 Federal Budget and response to Henry Tax Review have resulted in few significant structural changes to the tax, super and social security systems in Australia.

From a retirement planning perspective, the single most important change is the continuing of the $50,000 concessional super cap from 1 July 2012 for the over 50’s. However, only if you have a super balance under $500,000.

If you expect to approach the $500,000 limit in the next two years then start planning now.

Please find attached a 2010 Budget Update for your interest.

Please read the attached Update for more information.

Henry Tax Update

The Government's response to the Henry Tax Review has just been released.

The 2 most important proposed changes to super are:

1. Increasing the Super Guarantee from 9% to 12% from 2013 to 2019
2. Maintaining the $50,000 concessional super contributions cap for over 50's

Both of these proposals are positive news for retirement planning and make for great headlines. However, there is devil in the detail.

Please read the attached Update for more information.