My Tax Zone - TAX BLOG

Preparation for Tax Time 2010

2010-03-06T07:11:00.000+10:00

Preparation for Tax Time 2010 by the ATO is nearly complete.

David Butlet, Second Commissioner for the ATO, says "We receive over 16 million income tax returns from individuals, funds, companies, trusts and partnerships each year. In total, we manage around 40 million forms, 12 million phone calls and four million incoming correspondence items on an annual basis.

"Until recently we have been working with an income tax processing system that was over 30-years-old and in need of replacement. This was our largest ever IT overhaul."

On 2 March 2010, the ATO said "From now on we are back to our normal processing service standards".

For details of the changes to income tax assessments see this post: Changes to Notice of Assessment Taxtime 2010.

Tax Australia 2010

2010-03-05T20:26:00.000+10:00

Now is the time to remind Australia’s 11.8 million taxpayers to start getting ready to lodge their tax in Australia 2010 returns.

From 1 July 2010, people can prepare and lodge their tax Australia 2010 online using eZtax, which is free to try, secure and easy to use software which in most cases processes your return within 14 days.

As well as calculators, help screens and FREE access to our tax Australia 2010 knowledge base, through the Pre-filling report (accessible only by registered tax agents) available directly from the ATO, we can also download information from third parties directly into your tax return, including payment summaries, government payments such as pensions and allowances, bank interest and private health insurance details.

EZtax can be accessed free of charge 24 hours a day, seven days a week from our website at www.eztax.com.au.

For tax Australia 2010, government and third party information (Pre-filling Report) will be available to download progressively from 1 July. You can let us know if you feel you are missing information to complete your Australia tax 2010 and we can check the Pre-filling Report for you.

Property Investors Dictating the Property Market

2010-03-05T08:50:00.002+10:00

House prices in Australia have reportedly increased by nearly10% in the past year.

So how are property investors impacting the housing market?

According to Peter Boehm, of Our Home Sweet Home, "...property investors accounted for around 25% of all dwellings financed last year [2009] making them a substantial purchaser of residential property in Australia.

"Significantly, the ABS [Australian Bureau of Statistics] also reported that over 90% of investment properties purchased were existing properties, putting them in direct competition with first time buyers and thereby further increasing demand for existing housing stock. Importantly though, investors are afforded the benefits of negative gearing meaning their debt servicing costs are supplemented by tax savings as well as their tenant."

If you are looking to purchase an investment property you will need to do some serious research to find and appropriate property at an appropriate price. Having done the research myself I know how much effort goes into the process.

It’s also important to know the implications when deciding to purchase an investment property, or deciding whether to hold on to an existing investment property. Before investing in property you should ask yourself “Am I going to make money out of this investment?”. What is the real cost of having an investment property, and what are the tax implications for buying it? If you already have a property, do you know if it’s worth holding on to?

At My Tax Zone we have the experience to provide you with quality, practical advice and an in-depth overview of your current or potential investment. Our Property Investment Analysis Services can:

Give you answers on how much an investment property is likely to cost you after tax
What your rate of return you might anticipate based on data given
Provide a cash flow projection for up to 40 years
Provide both before and after tax cash flows
Provide any tax implications
Show you the cost-per-week for the investment property

We are able to provide you, the investor, with in-depth reports and analysis all aimed to help you make the right decision in your property investment purchase.

Contact My Tax Zone to discuss how our Property Investment Analysis service can benefit you.

Why do you think property prices have increased by as much as they have? What do you think is going to happen to prices during the next twelve months? Tell us below.

Australia Tax Refunds

2010-03-04T20:13:00.000+10:00

In Australia, the tax system is geared so most employees receive Australia tax refunds.

How does it work?

The Australian tax system requires employers to withhold (or deduct) an amount of tax from each pay and remit that tax to the tax office each quarter.

At the end of the year, the employer issues a PAYG Payment Summary, detailing the amount of income earned and the amount of PAYG tax withheld (deducted) from the gross income for the year. It is this amount withhgel that contributes to Australia tax refunds.

When submitted to the tax office with the annual income tax return, Australia tax refunds are calculated from the net or "taxable" income and the amount of tax withheld.

Put simply, if you have had more PAYG tax withheld from your pay than you needed, you get Australia tax refunds.

Starting a New Business and need business accounting support?

2010-03-04T07:01:00.002+10:00

People are starting their own businesses every day. If you're thinking about joining them, you probably have a vision of what you want that business to be.

What may excite you about your business is the product or service you have to offer, the success that you imagine, and the freedom of lifestyle that you are sure will come - in time.

What may bore or even frighten you is the myriad of numbers, business accounting systems and support people you have to wrestle with. What if you are asked about:

ABN?
GST?
Cash accounting?
Accrual basis?
Profit and loss statement?
BAS statements?
Employing staff?
Projections?
Cash flow?

If you are new to business, questions about your business accounting needs can contribute to the anxiety you may already feel. But, accounting is more than numbers - It is a tool that will help you "account for" what your business has done, is doing, and hopes to do in the future. That is what effective business accounting can do.

Whether you want to sell antiques or lay concrete, your business will require some form of accounting. Leaving it to the experts to look after your business accounting will FREE you up to focus on your job - the business of making money and achieving your goals.

Business Accounting Service

2010-03-03T21:17:00.001+10:00

My Tax Zone has a experienced team focusing on Business Accounting. Our Business accounting team assists business owners to meet both compliance obligations as well as working closely to identify opportunities to refine business accounting processes, interpret results and assist with the achievement of your goals in business.

We believe the secret to providing relevant services lies in the value we place on our client relationships. Client premises are visited to gain an understanding of the business environment. Meeting key personnel and stakeholders provide invaluable opportunities to develop a sound working relationship betweenyour business and our accounting team.

General Accountancy Services Offered

Monthly / Quarterly financial reporting
Budgets
Cash flows
Finance applications
GST / BAS preparation, lodgment
Income Tax
Tax planning
Acquisition
Self Managed Superannuation Fund (SMSF) administration and complience

How do we deliver our business accounting services?

Agreed fixed price standard services
No hidden costs in transitioning to your new business accounting experts
We guarantee same business day return of your phone calls
Commitment to delivery time of your work
Regular client contact

My Tax Zone can support and use most accounting packages. We are a MYOB professional partner, and are also able to support Cashflow Manager and Bank Link.

Contact us today to discuss how we can assist you with your business accounting requirements.

Super Contributions - Too much can mead Extra Tax

2010-02-27T20:13:00.001+10:00

Caps apply to contributions made to your super fund for a financial year. Any super contributed over the cap amount is subject to extra tax. The cap amount and how much extra tax you pay once you exceed it, depends upon whether the contributions are:

concessional - which are generally made to a super fund for or by you in a financial year and are included in the assessable income of the super fund (for example super guarantee, salary sacrificed amounts and any amount you are allowed as a personal super deduction in your income tax return).
non-concessional - which are generally made to a super fund by or for you in a financial year and are not included in the super fund’s assessable income (for example, personal contributions you make from your after-tax income).

Summary of contribution caps

	Concessional cap *	Transitional concessional cap*	Non-concessional cap
2009-10 financial year	$25,000	$50,000	$150,000
2008-09 and 2007-08 financial year	$50,000	$100,000	$150,000
Tax on amounts over the cap	31.5% (in addition to the 15% paid by the super fund)	31.5% (in addition to the 15% paid by the super fund)	46.5%
Other information	Any concessional contributions in excess of the cap will also count towards the non-concessional contributions cap	Any concessional contributions in excess of the cap will also count towards the non-concessional contributions cap	If you are under age 65 at any time during the financial year the contribution is made, you can bring forward two years of contributions, effectively allowing you to contribute up to three times the cap at once, or at any time during the three financial years.

*The $25,000 concessional cap will be indexed annually from 2010-11 onwards to average weekly ordinary time earnings (AWOTE) and rounded down to the nearest multiple of $5,000.
*The transitional concessional contributions cap is for those aged 50 years or older and is available until 30 June 2012.

If you are considering making extra contributions to super, ensure you understand all the implications by reading this document.

(Source ATO)

Self Managed Superannuation Funds (SMSF) Services

2010-02-25T21:21:00.003+10:00

Self Managed Superannuation Funds (SMSF) services is expected to increase markedly over the next several years.

Christian Tapia, financial advisor with RBS Morgans, says "Over the next several years baby boomers will be retiring. We find that people will often start planning for their retirement about ten years earlier. In doing so, they are looking for more than just investment options. That is where SMSF's raise the bar, by adding the additional wealth creation instrument - tax minimisation. Compounded tax savings, combined with sound investment advice, provides the ability to optimize both savings to date and future funds growth."

After the financial planner has done his bit, My Tax Zone steps in to provide a full administration service. Alternatively, the client may specify which services they require us to perform.

Our Standard Services include:

Preparation and maintenance of the Fund
- financial statements
- contribution reporting
- member statements
- member contribution details
Preparation of minutes of meetings
Preparation and lodgement of statutory returns with ATO
Conversion of funds from accumulation to pensions
Provision of responses to general enquiries from Trustees regarding the operation, administration and legislative requirements
Liaison with the Trustees’ financial advisors
Arranging the audit and actuarial certification
Attention to all compliance matters

For more information on optimising your retirement fun, contact David Maynard or David Fong of My Tax Zone on 07 3208 3888.

Taxation of Expatriate "Expat" Foreign Income

2010-02-16T15:31:00.003+10:00

Hidden away in the small print of the 2009 Budget papers was the removal of the 90 day income exemption rules. The changes will apply from 1 July 2009. The Changes will have a signifcant impact on expatriate "expat" Australians earning foreign income.

While exemptions from the changes will apply to government workers, charity workers, military and police personnel, the implications of the change will be significant:

When tax in the country where the income is earned is lower than Australia, affected taxpayers will pay more tax, in many cases receiving a bill at the end of the year.
Taxpayers will be required to record and maintain details of income earnings and relevant deductions while traveling overseas in order to prepare their Australian tax returns correctly and obtain maximum refunds.
ALL affected taxpayers will face extra compliance costs to lodge tax returns in Australia and claiming foreign income tax offsets.
Some taxpayers may be tax more than previously, depending on where they work
Affected taxpayers, many of whom will be backpackers earning extra income to support their travel, will need to seek assistance from tax professionals to complete their income tax returns
In some countries, like Saudi Arabia, where it is not easy to qualify as a resident, taxpayers who might otherwise stretch their overseas contracts to two years to avoid Australian tax, could be stung with a large tax bill.

The changes will cause inconveniences for many expatriate (expat) Australian's and force them into considering more sophisticated tax planning options. Recommendations we often make to clients in this category include:

Negative gearing and investment property - while there are significant tax savings associated with negative gearing, investment properties registered with the National Rental Affordability Scheme (NRAS) offer the additional benefit of $8000 tax credits per year - for ten years
Superannuation (either SMSF, retail or platform), even with some of the shine removed by the 2009 Budget, superannuation still offers tremendous scope for investment opportunities and tax savings.

My Tax Zone, in association with our affiliate partners in property and financial planning, are able to provide sound taxation advice and effective investment opportunities to taxpayers affected by the changes.

For further information contact David Maynard or David Fong on 07 3208 3888 or email dmaynard@mytaxzone.com.au.

Super for Same Sex Couples

2010-02-03T12:46:00.001+10:00

The meaning of 'spouse' has been redefined and this affects other aspects of super as detailed below.

For super laws your 'spouse' now includes:

someone you are married to
a person you are in a relationship with and that relationship is registered under certain state or territory laws (including registered same-sex relationships)
a person of either sex living with you in a relationship as a couple (generally known as a 'de facto' spouse).

The changes to the law mean same-sex partners can now have their relationship recognised by their superannuation fund. The changes amend tax and super laws affecting super death benefits, death benefit termination payments, making contributions for your spouse and other aspects of the super system.

The result is that:

the definitions of 'spouse', 'child' and 'relative' in the super laws include same-sex partners and their children
the definitions of 'dependant' and 'spouse' in the income tax laws include same-sex partners and their children
same-sex partners and their children under 18 years are treated as dependants for the purposes of taxing super death benefits and death benefit termination payments.

(Source: ATO)

ATO Withdraws e-Record Bookkeeping System

2010-01-30T13:33:00.001+10:00

Visit this post for details of our recommended bookkeeping system ==> Cashflow Manager.

From the 2010-11 income year the Tax Office's record-keeping product, e‑Record, will no longer be available.

The product has been reviewed and found to no longer be compatible with current commercial record-keeping systems. It would also need to be redeveloped to keep up with technology and new business directions.

Version 6.2 is the final version of e-Record and is available for download until 30 June 2010. The ATO encourages e-Record users to consider purchasing record-keeping software by 30 June 2010.

I have never liked e-Record as I found it to be not user friendly and the reporting is inadequate.

For those people wanting to replace e-Record we highly recommend Cashflow Manager - see our post

Easy Bookkeeping System - Cashflow Manager

2010-01-29T13:40:00.001+10:00

My Tax Zone is a Cashflow Manager re-seller - enquire today for 24 hour delivery.

The introduction of GST forced many small business to upgrade to PC based bookkeeping systems. Since then we have been a strong advocate for Cashflow Manager over every other bookkeeping system available in Australia. It is just so simple to use.

Simply record your receipts and payments transactions in columns. You don't need to know anything about accounting, and everything is right there on the screen for you to review. Each column has a 'GST' type that automatically calculates the GST and makes your BAS Statement a breeze. The program is so simple that it comes with a full, no questions asked 90 day money back guarantee so there is no risk in giving it a try.

Features of Cashflow Manager include:

Cashflow Manager uses columns to record receipts and payments.
Customising the program for your needs is very simple with a wizard that walks you through each step.
There are several ‘business templates’ that automatically establish columns for your type of business
Reconciling to your bank takes just 5 simple steps.
Comprehensive reports explain your business transactions and results.
Comprehensive, easy to follow Help and Video Tutorials that walk you through each process.
The Monthly Summary Report provides a picture of your monthly receipts and disbursements.

Changes to Notice of Assessment - Feb 2010

2010-01-29T09:05:00.003+10:00

The ATO are currently upgrading their computer systems to improve the way tax agents and taxpayers interact with the ATO.

As part of the changes, a new notice of assessment (NOA) will be introduced in February 2010.

Changes to the notice of assessment for income tax transactions apply from the introduction of our new Income Tax processing system, scheduled for February 2010. Some of the main changes are outlined below and samples of the current and new look notice of assessment are available.

You will only receive a new look NOA when Income Tax transactions start being processed using our integrated core processing (ICP) system.

The new look NOA is designed to be easier to understand and to provide more detailed information about your income tax assessment.

The changes made to the NOA will also apply to the notice of amended assessment.

Report Predicts Rental Rises Accross the Board in 2010

2010-01-29T08:51:00.002+10:00

Property investors will be pleased with Australian Property Monitors (APM) expectations of rental increases throughout Australia

The report stated that after rents remained stagnant in 2009, strong increases are expected in the coming year.

APM economist, Matthew Bell, said that this implies increased market confidence.

‘It is clear that in 2009 rents were generally kept in a holding pattern as landlords and the market waited to see the end of the global financial crisis.’

Mr Bell said that increases are expected in all capital cities.

‘Sydney rents are likely to increase by at least double the 2009 rate of 2.2% to approach the $500 per week level for houses. After a totally flat 2009, Melbourne rents should resume their long-term upward trend and are expected to rise by [between] 5% and 7%, in line with their long term growth rate.

‘Both Brisbane and Perth are poised to outperform the rest of the country as their property markets play catch up to Sydney and Melbourne. ‘In Perth, median house rents could hit $400, a rise of 11%, in line with the average growth rate of 12.4% experienced since 2003. Brisbane rents, coming off the same base of $360 as Perth, are also likely to approach $400 with an expected growth rate closer to 8%,’ Mr Bell said.

The report said that Canberra prices are expected to grow by up to 10%, with Darwin rents increasing by 8% throughout the year.

Mr Bell expects renters will be able to cope with the increases.

‘Although rents should rise across the board, an improving employment outlook will mean more income for renters to be able to cope with these increases in 2010.’

Stamp Duty Calculator

2009-12-22T06:31:00.003+10:00

If you are purchasing an investment property than stamp duty (a state imposed property tax) can be a substantial component of the purchase costs.

This online stamp duty calculator will help you estimate stamp duty on an investment property accurately of each state:

==> http://www.prospergroup.com.au/calculators.php#stamp-duty-calculator

The calculator also includes the mortgage registration fee, transfer fee and any stamp duty on a loan. This all encompassing calculator is excellent to use for accurate calculations.

ABN Registration

2009-12-18T10:47:00.000+10:00

The Australian business number (ABN) is the identifying number that businesses use when dealing with other businesses – for example, you generally need to quote an ABN on your invoices or other documents relating to sales that you make to other businesses to avoid having an amount withheld from payments made to you. You use your ABN in certain dealings with the Tax Office and other areas of government.

You are not required to have a tax file number (TFN) to register for an ABN. However, having a TFN reduces the risk of administrative errors when dealing with the Tax Office.
Income tax exempt organisations do not require a TFN.

Entitlement to an ABN - the ATO has recently upgraded their ABN entitlement guidelines.

To be entitled to an ABN you must be:

a company registered under corporations law in Australia
a government entity, or
an entity that is carrying on an enterprise in Australia.

A non-resident entity may be entitled to an ABN where:

it is carrying on an enterprise in Australia, or
in the course of carrying on an enterprise, it makes supplies that are connected with Australia.

Your enterprise does not have to be located in Australia.

(Source ATO)

What is a Notice of Assessment?

2009-12-18T10:38:00.001+10:00

The notice of assessment the ATO sends you is an itemised account of the amount of tax you owe on your taxable income. It also contains other details that are not part of the assessment, such as the amount of credit for tax you have already paid throughout the income year, adjustments for outstanding debts (either ATO or child support) and or FTB reconciliations and credits for PAYG instalments paid during the year.

When you receive your notice of assessment, you should make sure that everything is correct.

After the ATO has processed your tax return, you are issued with a "Notice of Assessment". This will tell you if you are entitled to a refund, or if you have a tax debt to pay.

To understand the items on your notice of assessment refer to the information in Reading your notice of assessment on the reverse side of your notice. To understand how your refund or tax liability is calculated, follow these steps:

work out if your taxable income is correct (the assessable income you earned minus deductions)
add up the amount of tax payable on that amount of income (tax on taxable income, plus Medicare levy and Higher Education Loan Programme/Student Financial Supplement Scheme repayments)
minus any offsets from your tax payable, then tax already paid (amounts withheld by your employer and paid on income activity statements)
if there is an amount left over, this is refunded to you, and
if there is an amount outstanding, this is your tax debt amount payable.

If you think the assessment is incorrect than check all the details on your notice of assessment with those on your tax return. If you think there is a problem, phone the ATO on 13 28 61 for help. You will need your notice of assessment and, if possible, a copy of your tax return.

If you use a Tax Agent they will handle that for your.

What is Medicare Levy

2009-12-17T10:11:00.003+10:00

Medicare is the scheme that gives Australian residents access to health care.

To help fund the scheme, resident taxpayers are subject to a Medicare levy. Normally, we calculate your Medicare levy at the rate of 1.5% of your taxable income. A variation to this calculation may occur in certain circumstances.

Generally, tax offsets do not reduce your Medicare levy. However, if you have excess refundable tax offsets, we use them to reduce your tax, including your Medicare levy.

Medicare Levy Reduction - A reduction in medicare levy can apply depending on taxable income (individual and combined family income) and number of dependant children. For the 2009 year, for example, medicare levy is nil if you meet one of the following tests:

Individual and income < $17794
Individual eligible for Senior Australians Tax Offset < $28867 (higher threshold applies for couples)
Individual eligible for the Pensioner Tax Offset < $25299 (higher threshold applies for couples)
Family (including single parent families)
==> 1 child < $42000
==> 2 children < $44757
==> 3 children < $47514
==> 4 children < $50271
==> 5 children < $53028 etc

The above thresholds have various shade-in limits.

Medicare Levy Exemption - There are several exemption categories that include:

If you are not an Australian resident you are EXEMPT from Medicare Levy.
Defence force members who receive free medical under Defence Force arrangements are exempt (but not non-defence force spouses)
Norfolk Island residents.

ATO Interest Rate Now 10.95%

2009-12-17T08:55:00.003+10:00

On 1 July 1999, the penalty arrangements for late payment and other obligations were rationalised and simplified pursuant to Taxation Laws Amendment Act (No 3) 1999.

This was done by the introduction of a uniform tax deductible general interest charge (GIC). The GIC replaced a complex system of interest and punitive culpability penalties imposed following late payment of outstanding amounts due to the Tax Office.

The GIC is updated quarterly with rates for the next quarter generally announced two weeks before the start of that quarter.

The GIC rate announced for March 2010 quarter is 10.95%.

Previous rates can be obtained here ==> previous qtr GIC rates

(Source ATO)

Claim Lost Super (small accounts) From ATO

2009-12-17T08:50:00.002+10:00

From 1 July 2010, the Government will require superannuation providers to transfer the following accounts to unclaimed monies:

lost accounts with balances of less than $200 (small lost member accounts)
lost accounts that have been inactive for a period of five years and have insufficient records to ever identify the owner of the account (insoluble lost member accounts).

Former account holders will be able to reclaim their money from the Tax Office at any time.

The first reporting period for superannuation providers will be 1 January 2010 to 30 June 2010 and the due date for lodgment and payment will be 31 October 2010.

(Source: ATO)

Small Business & General Business Tax Break

2009-12-15T10:16:00.001+10:00

The ATO has released this update on the small business tax break to help answer common questions.

This information is to assist businesses answer their questions on the
business tax break including 'Am I eligible?', 'What can I buy?' and 'How
do I claim it?'.

The link ==> http://www.ato.gov.au/distributor.asp?doc=/content/Content/00193781.htm

Published: 09 Dec 2009

NRAS Tax Office Guidelines

2009-12-15T10:07:00.002+10:00

The ATO has released details and guidelines on what NRAS is and how different types of taxpayers claim the NRAS tax benefits.

The link is ==> http://www.ato.gov.au/distributor.asp?doc=/content/Content/00179876.htm

The guidline covers topics such as:

Background
What NRAS incentives are provided through the tax system
Who is entitled to NRAS tax offset
Claiming the annual NRAS tax offset
Calculating the NRAS tax offset
and more

Average Mortgages Reach All Time High

2009-12-03T09:04:00.004+10:00

The average new mortgage arranged in Australia in November reached
$367,000, the highest on record, according to AFG, Australia’s largest mortgage broker. The AFG Mortgage Index shows that mortgage sizes have been on the rise since the middle of the year, having increased by 6.4% since May. Supporting recent reports of increasing property prices, average mortgage sizes have grown particularly strongly in Victoria – up 12.1% since May and New South Wales – up 10.7%, but less so in WA, where they rose by 3% and Queensland, where they have held steady since May.

November also saw the continuing re-emergence of property investors, who accounted for one in three of all new mortgages arranged (33.8%), the highest such figure all year, and well up on the one in four (24.7%) figure for March when investment reached its lowest point.

However, overall monthly sales of mortgages in November declined for the second month in a row, off the back of increasing interest rates and sharply declining First Home Buyer numbers. First Home Buyers accounted for just 13.7% of all mortgages arranged in November, compared to 28.1% at their peak in March this year.

Mark Hewitt, General Manager of Sales and Operations says: ‘Larger average mortgages and greater activity by investors are usually the signs of a confident market. But confidence is still fragile. October and November are seasonally strong months in the calendar, but we’ve seen two straight months of decline. In our view the RBA has gone too far too fast in ratcheting rates back up again. Yesterday’s unprecedented third monthly rise will do nothing to encourage ordinary families back into the property market.’

AFG Mortgage Index also shows a slight change in the balance of lenders from banks to non-banks during the past two quarters (Table 6) suggesting that second tier lenders are becoming somewhat more competitive as global credit conditions ease.

Source: AFG

Single Member SMSF

2009-11-30T11:32:00.002+10:00

Single member funds:

Did you know a fund can be set up with only one member?

The ATO allows for the creation of single member funds but it is important to remember the rules governing management of these funds.

In case you were not aware of the rules, they have been summarised for you below.

The first option for managing a single member fund is to choose a corporate trustee. In this case be sure that the member is one of the following

the sole director of the trustee company
one of only two directors, that is either of the following

* related to the other director
* not an employee of the other director.

The second option for managing a single member fund is to have two individuals acting as trustees. In this case one trustee will be the member and the other trustee will be either

a person related to the member, or
any other person who does not employ them.

It is important to remember that a trustee or director can’t be paid for their services as a trustee or director in relation to the fund.

Source: ATO

Changes to Super Co-contributions

2009-11-18T09:48:00.002+10:00

The super co-contribution matching rates for eligible personal super contributions have been temporarily reduced as part of the 2009 Federal Budget.

If you make eligible personal super contributions to a complying super fund or retirement savings account and you meet all the eligibility requirements, the rate at which your contributions are matched and the maximum super co-contribution amount paid will be temporarily reduced.

The new super co-contribution matching rates will be:

100% ($1.00 for every $1.00) for the 2009-10, 2010-11 and 2011-12 financial years, with a maximum super co-contribution of $1,000.
125% ($1.25 for every $1.00) for the 2012-13 and 2013-14 financial years, with a maximum super co-contribution of $1,250.
150% ($1.50 for every $1.00) from 2014-15 onwards, with a maximum super co-contribution of $1,500.

The maximum super co-contribution paid reduces as your income increases, phasing out when you reach the higher income threshold.

The higher income threshold for the 2009-10 financial year is $61,920. The income thresholds are indexed annually in line with average weekly ordinary time earnings (AWOTE).

(Source: ATO)