If you make a non-concessional contribution to your super fund before June 30, you may be eligible to a co-contribution from the government, providing a boost of up to 50% on your contribution.
For those who are eligible, the Government Co-Contribution scheme is a great way to increase your retirement savings, with the help of the government. The co-contribution can provide you with up to $500.00 of super contributions, if you contribute a qualifying amount of your own.
To qualify you need to:
- Pass a work test – to qualify you must make a minimum of 10% of your income for the year from paid employment or conducting a legitimate business. If you are not working, and can’t meet this test then you will not be eligible for the co-contribution. If you are over 65 it is important that you talk to our team before considering a contribution, as the work test required to qualify can become complicated.
- Be a low to middle income earner – if you earn up to $34,488 the government will contribute $0.50 per $1.00 of contribution you make up to a $500.00 contribution. The benefit reduces for those that earn over $34,488 until you reach $49,488 at which point you will no longer be eligible.
- Make a non-concessional contribution to a complying superannuation fund – not sure whether you comply? Contact our office today and we can explain.
What’s most exciting is that this benefit really does add up in your superannuation fund. For a start you effectively receive a 50% return if you qualify for the full benefit and you contribute the $1,000. These funds then work for you up to your retirement.
The information contained in this article is general by nature, and is not all encompassing, nor does it take your personal circumstances into consideration. If you’d like to chat about your specific circumstances, please contact us, or give the team a call.
Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 466137.