June 2009

Budget 2009

The Rudd Government delivered its second Budget on 12 May 2009 under very different circumstances to those existing at the time of its first Budget. click here for more details

The clock is ticking for salary sacrificing to super

Anyone intending to salary sacrifice their income/remuneration into superannuation should seriously consider doing so before 30 June this year, for two main reasons. click here for more details

Super co-contribution reminder

Super fund members who are eligible to receive the Government's super co-contribution of up to 150% of their personal contributions (up to $1,500) need to make their contributions before 30 June 2009. click here for more details

Small Business Tax Break Boost

The Small Business and General Business Tax Break, or Investment Allowance, has been increased to 50% for small business entities, (“SBEs”). In general terms, an SBE is a business with an annual turnover of less than $2 million. click here for more details

• From 1 July 2009, the income tax exemption for foreign employment income will basically be abolished;
• From 1 July 2010, the Private health insurance rebate will effectively be reduced to nil for single taxpayers with a taxable income greater than $120,000 and couples with joint taxable incomes greater than $240,000;
• The age pension age (for both men and women) will be gradually increased from age 65, commencing on 1 July 2017, and reaching age 67 on 1 July 2023; 
• Taxation of shares or rights acquired under Employee Share Schemes will be reformed, although how this will happen is now under a cloud;
• From 1 July 2009, the deemed dividend rules will be extended to include situations where a shareholder of a private company (or their associate) uses company assets such as real estate, cars and boats, for free or at a discounted rate. 
• The Government will halve the minimum payment amounts for account-based pensions for 2010 (e.g., the current minimum 4% drawdown for people under the age of 65 will be reduced to 2%). 
  
  

Watch out for superannuation scams...

The Government is warning people to exercise extra care in protecting their superannuation account statements and personal details, in response to NSW Police Force information that a Sydney-based fraud syndicate is using stolen identities to steal from victims' superannuation accounts. click here for more details

...and dodgy tax schemes

The Tax Office is conducting a national awareness program to help taxpayers protect themselves against promoters marketing dodgy tax schemes.

In the current financial climate, they are concerned promoters may increase the marketing of high risk tax schemes and scams, taking advantage of the recent financial vulnerability of many taxpayers.

Concerned individuals may wish to consult the Tax Office's fact sheet 'Tax planning – investigate before investing', which provides warnings to investors.

Liability limited by a scheme approved under Professional Standards Legislation.

The information in this newsletter is quite general in nature and anyone intending to apply it practically to their own circumstances should seek professional advice to verify it’s individual applicability. 

If you have any queries regarding the information contained in this
update please do not hesitate to contact us.

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