Australian Government, A Plan to Simplify Superannuation

Simplified Superannuation - Final Decisions

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Contribution incentives for the self-employed

Key Points

  • The self-employed (and other eligible persons) will be able to claim a a full deduction for all personal superannuation contributions until age 75.
  • Eligible self-employed persons will have access to the Government co-contribution scheme.

Age-based limit and deduction rules (page 33)

From 1 July 2007, the self-employed (and other persons who are currently eligible for a deduction) will be eligible to claim a full deduction for their superannuation contributions up to age 75.

Extension of the Government co-contribution scheme to the self-employed (page 34)

The Government co-contribution scheme will be extended to the self-employed, effective from 1 July 2007 provided they satisfy the existing eligibility criteria for the co-contribution.

To provide for the self-employed, income will be determined by adding the assessable income of an individual (including any reportable fringe benefits, if applicable) and then reducing that amount by their expenses incurred in carrying on a business.

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