Superannuation Co-Contribution

[scott]

Is it possible to reduce your taxable income, through negative gearing to then qualify for the Superannuation Co-Contribution?


Scott

 

[poppy]

I'm not sure but I made a small personal contribution for the 07-08 financial year just to find out. I won't know for a while whether I got it as it takes some time for them to pay the co-contribution into accounts. I'll let you know what happens.

I DID receive a low income tax offset of about $300 despite my gross salary being well above the cut off point

 

[MattR]

The co - cont is based on Assessable Income not Taxable Income

 

[Lukey13]

Is assessable income basically all income (including rental income) without any deductions?

Anyone know whether the new $150K income cap on the Baby Bonus is based on assessable or taxable income?

 

[tess85]

I seem to remember noel whittaker saying that you *can* do this. But please check this out first, preferably with the ATO or an accountant.

Oops - for some reason I thought you said "through salary sacrificing instead of negative gearing". If it's through neg. gearing, then no. my bad!

 

[scott]

"The co - cont is based on Assessable Income not Taxable Income"

Can a friendly accountant explain the difference?

Thanks
Scott

 

[yo yo ma]

"The co - cont is based on Assessable Income not Taxable Income"

Assessable income is income that can be taxed, provided you earn enough to exceed your tax-free threshold.

Taxable income is the income you have to pay tax on. It is the term used for the amount left after you have deducted all the expenses you are allowed to claim from your assessable income.

Assessable income – allowable deductions = taxable income

Therefore the answer to the original question is "no". There are a few examples on the link.

http://www.ato.gov.au/youth/content.asp?doc=/content/48101.htm

 

[scott]

Thanks Yo Yo Ma

Scott