Testing of Government support – expanding the definition of income
With effect from 1 July 2009, the definition of income which is used to determine eligibility for certain government support programs will expand in the following three areas:
A. Salary sacrificed superannuation contributions - the definition of income will include salary sacrificed superannuation contributes for the purposes of determining eligibility for certain government support programs, such as:
- Superannuation co-contributions;
- Income support payments for people below Age Pension;
- Family assistance and child support; and
- Financial and retirement savings assistance delivered through the tax system
B. Net investments losses - the definition of income will expanded to include ‘net financial investment losses’ and ‘net rental property losses’, where appropriate, when determining whether an individual is entitled to claim, or is liable for, any of the following:
- Senior Australian tax offset;
- Medicare levy surcharge; and
- Dependant tax offsets (e.g., spouse tax offset).
C. Reportable fringe benefits amounts - the definition of income will be expanded to include reportable fringe benefits’, when determining eligibility of the following tax offsets:
- Senior Australian tax offsets;
- Pensioner tax offsets; and
- Dependant tax offsets (e.g., spouse tax offset).