A person may be eligible to receive government co

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A person may be eligible to receive government co- contributions if they are under 71 and at least 10% of  their “total income” for the income year is attributable  to eligible activities (eg employment) or carrying on a  business A person’s “total income” for an income year is the  sum of the person’s: assessable income  reportable fringe benefits total, and  reportable employer superannuation contributions  for the income year © CCH Australia Limited [¶24.7](i)
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Foundations of Taxation Law Government co-contributions  Government co-contributions  (cont) (cont) The government co-contribution is equal to 100% of  the eligible personal superannuation contributions  that the person makes during the year and cannot  exceed $1,000.  Co-contributions reduced by 3.333 cents for each  dollar by which the person’s total income for the year  exceeds the “lower income threshold” Lower income threshold is $31,920 (for 2009/10 to  2011/12)   © CCH Australia Limited [¶24.7](j)
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Foundations of Taxation Law Proposed additional government  Proposed additional government  contribution contribution In May 2010, the government announced that it  would introduce a new government contribution for  individuals who have “adjusted taxable income” of up  to $37,000 It will be calculated by multiplying the concessional  contributions (ie deductible contributions) made by or  for the individual by 15%  Maximum annual contribution will be capped at $500 This reform is proposed to apply from the 2012/13  income year © CCH Australia Limited [¶24.7](k)
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Foundations of Taxation Law Reportable employer  Reportable employer  superannuation contributions superannuation contributions Reportable employer superannuation contributions  are relevant to: Deductions for personal superannuation  contributions Tax offsets for spouse contributions Government co-contributions Reportable employer superannuation contributions  are essentially salary sacrifice contributions © CCH Australia Limited [¶24.8](a)
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Foundations of Taxation Law Reportable superannuation  Reportable superannuation  contributions contributions Reportable superannuation contributions are relevant  for determining: Adjusted taxable income (entitlement to tax  offsets) Income for surcharge purposes (Medicare levy  surcharge) Repayment income (HELP repayments)  Reportable superannuation contributions are the sum  of the person’s: Reportable employer superannuation contributions Deductions under Subdiv 290-C ITAA97 © CCH Australia Limited [¶24.8](b)
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Foundations of Taxation Law [¶24.9](a) © CCH Australia Limited Tax on excess contributions Tax on excess contributions Superannuation contributions that exceed specified 
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