Hi,
First post in this forum...a great idea. Hopefully more people find out about it.
some good news may be around the corner for Jenny. Based on my understanding of the Budget proposals, the 'personal deduction' eligibility in relation to personal contributions is to be made consistent with the eligibility to receive the government co-contribution (other than the income limits hopefully).
This could mean that 'employed' people will be able to claim a deduction for personal contributions from next financial year without having to meet the 10% rule. So if your employer doesn't allow you to SS, you might be able to achieve the same result in tax return.
Although it seems an apparent loophole, given the removal of age based limits and replacing it with a cap which covers personal deductible and employer conts combine, people cannot double dip (common strategy used by those that can salary sacrifice) so it makes sense.
The bad news is that it could stop unemployed people from claiming deductions for personal contributions, since one of the criteria for the co-cont is that at least 10% of income comes from employment (and/or self employment from next FY).
However, we need to wait for the legislation is released to see whether the above is accurate.
Cheers
Techo
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