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In this edition

In-house asset rules and Self Managed Superannuation Funds
Coping with redundancy
Super Co-contribution - the end of Financial Year is fast approaching!
The Taggart Group of Companies - What we can do for you.

Article brought by Dr Jim Taggart OAM

Dr Jim Taggart OAM

Jim's career began as a Teacher and a Deputy Principal of a Catholic High School. Since entering the field of financial planning in 1987, he has successfully developed his business to service nearly 6,000 clients in which his organisations provides advice on Financial Planning, General Insurance, Finance & Leasing. The Taggart Group Pty Ltd runs the General Insurance business, and hold an AFS Licence as General Insurane Brokers. Taggart Nominees Pty Ltd is an AFS Licensee and runs the Financial Planning and Life Insurance Broker business.

Also during this time Jim has completed another Masters Degree in Commerce, majoring in Financial Planning to add to his other qualifications of Diploma of Teaching, Bachelor of Arts and a Master of Arts from Macquarie University. Jim had completed his Doctorate in Business Administration, and also holds the FChFP designation awarded by the Association of Financial Advisers.

In the field of writing Jim has written two books while he was teaching with his senior geography text winning a geography award. In recent times Jim has written many articles for industry publications as well as newsletter articles for various networking associations.

Jim became a CFP with the Financial Planning Association of Australia in 2002, a desingation he still holds. Jim is also QPIB qualified, being the highest in his profession for General Insurance in Australia. Jim is the recent past National President of the Association of Financial Advisers [AFA] ending his tenure in October 2010, and was the NSW/ACT Director from 2006 - 2008. 

Jim has lived in the hills area at Kellyville for over 28 years. Jim has been actively involved in community activities such as: -

  • Salvation Army
  • Vice President of Regional Chamber of Commerce 1999 - 2000
  • Past board member of Gilroy College and Marion College
  • Past Chairperson and current member of the Hills Excellence in Business Committee 355 Management Committee
  • Past Chairman of the Advisory Council for TAFE NSW Western Sydney Institute

Jim is married with four children, and conducts a very active and preferred insurance/finance and financial planning practice.

For many years Jim has performed community services in diverse areas and was Chairman for the Red Shield Appeal in Western Sydney(past 7 years). Jim was the Chairman for the Olympic Fundraising Committee for the Western Region.

Jim has been fortunate to speak at offshore conferences in the areas of Financial Planning and Motivation in such countries as Switzerland, New Zealand and U.S.A.

In November 2005 Jim was awarded the 2005 Zurich / Association of Financial Advisers [AFA] Adviser of the Year Award. In January 2006 Jim was presented with the 2006 Baulkham Hills Shire Australia Day Community Service Award.  In January 2010 Jim was awarded the Medal of the Order of Australia in the 2010 Australia Day Honours.

 

Contact details

Website
The Taggart Report
Phone
02 9894 9155
Fax
02 9894 8599
Email
Email us

Super Co-contribution - the end of Financial Year is fast approaching!

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Eligibility:

To be eligible for the co-contribution you must:

  • have 'total income' received in the financial year less that the total income upper threshold, which is $60,342 for 2008/2009.
  • be under 71 years old at the end of the financial year in which the personal contribution is made.
  • receive 10% or more of the total income from eligible employment and/or carrying on a business.
  • usually only available to Australian residents, or New Zealand permanent residents working in Australia.
  • have made personal undeducted super contributions to a complying super fund.
  • have lodged an income tax return for the financial year in which personal contributions are made.

What is total income?

Total income is the total of assessable income and reportable fringe benefits amounts.

  • it is not taxable income.
  • tax deductions do not increase eligibility.
  • assessable capital gains will increase assessable income and therefore total income.
  • the taxable component of super lump sums, employer termination payments and income stream pension payments may increase assessable income if included in assessable income.
  • employer super contributions, including those that are salary sacrificied, do not count towards total income.

Co-contribution rates and thresholds for 2008-2009.

The following rates and thresholds apply for the 2008/2009 financial year:

Lower total income threshold

Upper total income threshold

Maximum super co-contribution

Maximum co-contribution reduction factor

$30,342

$60,342

$1,500

$0.05 for each $1 income over lower income threshold

Quick facts:

  • the Government co-contributes $1.50 for every $1 of eligible personal contributions, up to $1,500.
  • the maximum co-contribution reduces by $0.05 for every $1 of total income above the lower total income threshold.
  • co-contributions:
    • are not included in your tax assessable income;
    • are not taxable contributions;
    • are not counted towards the non-concessional contribution cap;
    • are fully preserved.

Quick tips:

  • if a self employed person wants to attract the super co-contribution, they must ensure that some of their personal contributions are not claimed as a tax deduction.
  • for someone with unrestricted non-preserved monies who meets the eligibility rules, a re-contribtuion of $1,000 could see them receive the co-contribution [this should be confirmed with your accountant and financial adviser before proceeding].

Payment of the co-contribution:

  • the co-contribution will usually be paid to the fund that the personal contribution has been made to, unless the ATO receives a separate superannaution fund nomination form [Nat 8676].
  • if the member dies, any outstanding Government co-contribution will be paid ot their personal legal representative in the case where the Tax Commissioner is satisfied that the eligible person is deceased.
  • if the Tax Commissioner is satisfied that a member is retired and does not have an eligible account, the co-contribution will be paid to a person. A form entitled 'Super Co-contribution - request for direct payment [NAT 10759] must be completed and received by the tax office.

We hope that the above information has helped you to determine whether you would be able to make a personal contribution in this financial year to be eligible for the Government co-contribution. Please remember that the personal contribution must be undeducted, which means that you will not be able to claim a tax deduction for the contribution. If you claim a tax deduction for all of your personal contributions you will not be eligible for the Government co-contribution. If you need any help with your super contributions leading up to 30 June 2009, please do not hesitate to contact our office to speak to one of our advisers on (02) 9894 9155 , or email to taggart@taggartgroup.com.au.

Disclaimer: This information has been extracted from a document provided by Aviva Australia and is general information only. No personal needs or circumstances have been taken into consideration when preparing this information. This information is based on our understanding of the existing legislation, proposed legislation, and rulings as at the date of this publication.

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