A number of new measures will take effect from 1 July 2009.
Temporary reduction of the super co-contribution
As announced in the 2009 Federal Budget, from 1 July 2009 the Government will temporarily reduce the:
- co-contributions matching rate
- maximum amount payable by the Government as a co-contribution on an individual’s eligible personal non-concessional super contribution.
Under this measure, the new matching rates will be:
- 100% for the 2009-10, 2010-11 and 2011-12 financial years, with a maximum co-contribution of $1,000
- 125% for the 2012-13 and 2013-14 financial years, with a maximum co-contribution of $1,250
- 150% from 2014-15 onwards, with a maximum co-contribution of $1,500.
These changes have received royal assent.
Super co-contribution rates for previous years
From 1 July 2007 to 30 June 2008, the maximum co-contribution amount was $1,500, and the self-employed became eligible.
From 1 July 2006 to 30 June 2007, the maximum co-contribution amount was $1,500.
From 1 July 2005 to 30 June 2006, the Government announced a one-off additional payment, which doubled your co-contribution entitlement for that year. The maximum co-contribution amount was $3,000.
From 1 July 2004 to 30 June 2005, the maximum co-contribution amount was increased from $1,000 to $1,500.
Reduction in concessional contributions cap
In the 2009 Federal Budget, the Government announced:
- a reduction of the concessional contributions cap from $50,000 to $25,000 (indexed)
- a reduction of the transitional concessional contributions cap from $100,000 to $50,000 (not indexed) for those aged 50 years old or older for the 2009-10 to 2011-12 financial years.
The annual cap on non-concessional contributions remains at $150,000 (indexed) for the 2009-10 financial year. In the future, the cap will be calculated as six times the level of the (indexed) concessional contributions cap.
These changes have received royal assent.
Reforms to income tests
From 1 July 2009, the income tests for a range of tax and transfer programs have changed. The changes to these tests do not affect your assessable income but they may affect your entitlement to a range of tax offsets and the amount of tax you are liable to pay.
These changes have received royal assent.
Last Modified: Thursday, 2 July 2009
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