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Posted on 24 July 2013

 

 

If you're a low-to-middle income earner, the government may help boost your super savings through the super co-contribution.

The ATO uses the information on your tax return and the contribution information received from your super fund to work out whether you’re eligible. If you are, the ATO will calculate the co-contribution amount and deposit it into your super account.

The 2014 financial year has a matching rate of 50% to a maximum of $500; meaning if you are eligible and contribute $1,000 you will receive a $500 co-contribution.

You are eligible for a super co-contribution if:

  • you made an eligible personal super contribution in the income year
  • your total income (which includes reportable employer super contributions) was less than the higher income threshold for that year (2014: $48,516)
  • 10% or more of your total income was from eligible employment, running a business or a combination of both
  • you were less than 71 years old at the end of the income year
  • you did not hold an eligible temporary resident visa at any time during the year (unless you were a New Zealand citizen or the holder of a prescribed visa)
  • you lodged your income tax return for the relevant income year.

Now that a new financial year has started have you considered setting up a regular bank transfer into your super fund account? An annual contribution of $1,000 equates to regular fortnightly contributions of $38.46.

Please contact our office if you are unsure about your eligibility.

Tags: Superannuation 2014 Growth Admin ATO Strategy

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