Is it no longer possible to salary sacrifice to become at least partially eligible for co-contribution?

Q.

I am aware that, in the Federal Budget, the Co-contribution matching rate was dropped from 1.5 to 1 (thus reducing the maximum co-contribution from $1,500 to $1,000). I have also seen reference to the inclusion of salary sacrifice contributions in determining the earnings eligibility for the co-contribution. In other words it is now not possible to salary sacrifice from, say, $65,000 down to, say, $50,000 (and make some personal contributions) to become at least partially eligible for co-contribution.

The new rules take effect from 1 July 2009. For the current financial year you are still able to reduce your income by salary sacrifice to increase your eligibility for the co-contribution.