| $500 Incentive for Mature Age Workers |
| The Federal Budget of 2005 introduced an incentive that will save those aged over 55 up to $500. |
The objective of this benefit known as a Mature Age Offset is to act as an incentive to Australians aged 55 or over, to remain in work. Whether a tax benefit of $500 is likely to prevent retirees from accessing their superannuation fund over age 55, remains to be seen.
The eligibility for this offset is that the taxpayer must be aged 55 or older at year end, an Australian resident with net income from working not exceeding $58,000 in the 2004/05 year.
This new term, ?net income from working?, includes employment income from salary and wages, personal services income, income from a business carried on by the taxpayer in their own right or as a partner and reportable fringe benefits. Specific items excluded from the definition are eligible termination payments, long service leave, annual leave and investment income. Income from a family discretionary trust is not net income from working.
Salary packaging will only be useful if made to non-reportable benefits.
The offset is not refundable.
10th-June-2005 |
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