Time is running out for you and your family members to take advantage of the Government Co-Contribution initiative in the current financial year.
Basic eligibility criteria is that a tax return is lodged, at least 10% of total income comes from employment or carrying on a business, and you are less than 71 at the end of financial year.
If you make a personal after-tax contribution (i.e. non-concessional or undeducted contribution) to superannuation, you may qualify for an additional contribution directly from the Government. Essentially, the Government will match on the basis of 50c for every dollar of eligible contributions you make to superannuation up to a maximum co-contribution amount of $500 (i.e. $1,000 contribution to receive $500 government co-contribution).
The full super co-contribution is available if your total income is less than $35,454. The maximum co-contribution reduces by 3.33 cents for every dollar earned over $35,454 reducing to zero when your total income is $50,454 or more.
There is no need to claim the Government’s co-contribution. Provided you qualify and submit a tax return, the Government will automatically forward the co-contribution amount to your super fund.
To find out how the co-contribution works and who is eligible to receive the government’s co-contribution to superannuation, click here.
If you want to take advantage of the Government co-contribution initiative in the current financial year, you will need to make a non-concessional contribution to super so that it is received and processed by the fund prior to Thursday, June 30, 2016.