We’ve got some great news about your super. You could be eligible to get some bonus $$ from the government. Check it out.
If you earn less than $51,021 for 2016–17 and make a personal (after tax) contribution into your super account before June 30, the government will match every dollar of your personal contribution with 50 cents, up to certain limits (the maximum co-contribution for 2016/17 is $500, but it reduces as your income increases from $36,021, phasing out at $51,021).
So how does it work?
Let’s consider the case of Jane, who’s earning $40,000 per year:
- Jane scrapes together $500 (by selling her 80s stuff to trendy vintage stores) and puts it into her max Super account before 30th June 2017.
- She then lodges her tax return after July 1, 2017.
- The Australian Taxation Office will work out that Jane’s eligible for the Government Co-contribution and pays an extra $250 into her max Super account.
The best part is, she doesn’t pay any tax on the Government Co-contribution. $$$ for jam!
Do I qualify?
There are some criteria you’ll need to meet – don’t complain, it’s bonus $$ from the government! So make sure you:
- earn under $51,021 per annum (income includes your assessable income plus reportable fringe benefits);
- make a personal after tax contribution to your super before June 30th 2017 (this doesn’t include salary sacrifice contributions or spouse contributions);
- are a permanent Australian resident;
- make 10% or more of your income from eligible employment, running a business, or a combination of both;
- lodge an income tax return for income year; and
- are less than 71 years old at the end of the income year.
There are heaps of ways to make a contribution; simply contact us for additional information.
If you like nitty-gritty, more details on the Government Co-contribution are also available on the ATO website.