Did you know you may be eligible to receive a contribution to your superannuation account from the government, simply by making personal (after-tax) contributions to your super?
That’s right! The government co-contribution scheme provides an incentive for those on low and middle incomes to contribute to their super accounts and get an extra boost from the government.
If your total assessable income for the 2016/17 financial year is less than $51,021 and you make one or more after-tax contributions to your super account through the year, you may receive a tax-free co-contribution of up to $500 to your super.
The amount you receive will depend on a number of factors, including your assessable income for the financial year and the amount you contribute to your super fund. Based on these and other factors, government contributions are allocated on a sliding scale ranging from $20 and $500. Visit the Australian Taxation Office’s (ATO) website ato.gov.au/super for full details of the co-contribution scheme and to check whether you meet the eligibility criteria.
The best thing is, it’s super easy! You don’t need to apply for the co-contribution, just make one or more contributions to your super this financial year.
When you consider that we are living longer than ever before, there is a risk some of us might outlive our retirement savings. Hence, contributing to your super on a regular basis is one of the most important things you can do to set yourself up for a successful retirement.
Make sure your super fund has your tax file number, then lodge your tax return in the usual manner and the ATO will make the applicable contribution to your super account. Plus, the government co-contribution is not taxed when it is paid into your account.
With the end of the financial year fast approaching, there’s no time like the present to contribute to your super and take advantage of a government co-contribution. Your contributions must reach your super fund before 30 June 2017, so get cracking now. Your future self will thank you!
Get in touch with Prime Super – call 1800 675 839 or visit primesuper.com.au.
DISCLAIMER – This article contains general information only and does not take account of your personal circumstances. You should obtain personal advice where appropriate. This article is current as at the date of publication and subject to change. Prime Super Pty Ltd ABN 81 067 241 016 AFSL 219723 RSE L0000277 as Trustee of Prime Super ABN 60 562 335 823. A Product Disclosure Statement is available from the issuer by calling 1800 675 839 or at primesuper.com.au.