For those out there on incomes less than $49,488 per year, if you make a personal contribution (from personal funds) to superannuation prior to June 30 this financial year, the government will match your contribution up to $500 per annum with the benefit being directly linked to your level of income.
For example – if you earn $34,488 or less (FY 2014/15), the Federal Government will pay $0.50 (50 cents) for every dollar you contribute to your super fund in after-tax dollars, up to a maximum of $500 a year. In other words a contribution of $1,000 in this example would make you eligible for $500 to be paid into your superannuation account by the government after your taxation return is complete.
If you earn more than $34,488, your co-contribution entitlement reduces by 3.33 cents for every dollar you earn over $34,488, until it cuts out at $49,488. For example, if you earn $40,000 and you make an after-tax contribution of $1,000, the Government’s maximum contribution of $500 is reduced by $184, which potentially gives you a co-contribution of $316.
There is no need to apply for this bonus – all you have to do is make the contribution and lodge an income tax return and the rest is done automatically.
To be eligible for this incentive, your income should be below $49,488 in the tax year, be derived from employment or business activities and be below the age of 71.
Should you wish to discuss your eligibility for a government co-contribution further or if you require assistance with any other financial planning matter, please don’t hesitate to contact our office on (07) 3891 7666
Alexander(Xan) Kitchin CPA, BBus(Acc), BEcon
Senior Financial Planner & Princpal at Wealth Connexion Pty Ltd
Important Information: The information in this document is of a general nature only. Before you make an investment decision you should assess for yourself or obtain professional advice on whether the information is appropriate for your particular investment objectives, financial situation and particular needs.
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