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.

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