YE Tip – BEFORE 30 June – Government Co-Contribution

Super Saving Government Bill - YE Tip – BEFORE 30 June - Government Co-Contribution

Pay up to $1000 into your Super Fund (an after tax, non-concessional contribution) and if you earn less than $61,920 the government will match the amount on a sliding scale.  Pay BEFORE 30 June 2012 and you get this Government Co-Contribution.

If you or a partner earn less than $31,920 (and, a strict condition, you must work at least part time) the government will match, dollar for dollar up to $1000, what you put into the fund. The only catch is your $1000 has to come from after-tax income – that is, a voluntary contribution, not salary sacrificing. Oh, and both your $1000 and the government’s $1000 stay in the fund until you retire.

Earn more than $31,920 but less than $61,920 and the government will also contribute, but 3.33¢ is lopped off every subsequent dollar.

Even at, say, $50,000, getting the handout is better than salary sacrificing. You, or rather your fund, would get $397 for $1000 paid in. To get the same benefit from salary sacrificing would cost $2600. Make the most of it if you can because next year’s cutoff will be only $46,920.

A cheque is better than internet banking for making super contributions because it’s counted when the fund gets it, not when it’s cleared, unlike eftpos. Call your super fund for more information.


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
This entry was posted in Super Law & Compliance, Super Tax and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s