Government super

[ladycasper]

Does anyone know in simple terms of a scheme that if you are self employed and have a low income, so you can only afford to pay a very small amount of super in, that the government pay into it for you to help you ??

 

I am sure I can read something in the past !! ??

 

Also what are co-contributions ???

 

Thanks any advice would be much appreciated..

 

[Diane]

I can help with the co-contributions thing! If you are earning below what the tax office deems to be the "Lower income threshold" (currently $31,920 a year for the current tax year) and put in an amount up to $1,000 into your own Super fund before the end of June, the Government will match this amount with a contribution of their own.

 

Here's the full blurb: http://www.ato.gov.au/individuals/distributor.aspx?menuid=0&doc=/content/00250233.htm&page=16#P470_33990

 

We've done this for my Super for the past few years - the important thing I guess is this paragraph: "You don't need to apply for the co-contribution. If you're eligible, all you need to do is make personal super contributions to your super fund or retirement savings account and lodge an income tax return. We'll use the information on your income tax return and the contributions information we receive from your super fund or retirement savings account to work out whether you're eligible. If you are, we'll automatically calculate the co-contribution amount and deposit it into your super account."

 

HTH

 

Oh, just read that article a bit more thoroughly - your earnings can be up to $61,920 a year, but below $31,920 they'll match your contribution dollar for dollar, between those two amounts they'll match on a decreasing sliding scale!

[Guest niliclan888]

I can help with the co-contributions thing! If you are earning below what the tax office deems to be the "Lower income threshold" (currently $31,920 a year for the current tax year) and put in an amount up to $1,000 into your own Super fund before the end of June, the Government will match this amount with a contribution of their own.

 

Here's the full blurb: http://www.ato.gov.au/individuals/distributor.aspx?menuid=0&doc=/content/00250233.htm&page=16#P470_33990

 

We've done this for my Super for the past few years - the important thing I guess is this paragraph: "You don't need to apply for the co-contribution. If you're eligible, all you need to do is make personal super contributions to your super fund or retirement savings account and lodge an income tax return. We'll use the information on your income tax return and the contributions information we receive from your super fund or retirement savings account to work out whether you're eligible. If you are, we'll automatically calculate the co-contribution amount and deposit it into your super account."

 

HTH

 

Oh, just read that article a bit more thoroughly - your earnings can be up to $61,920 a year, but below $31,920 they'll match your contribution dollar for dollar, between those two amounts they'll match on a decreasing sliding scale!

 

Super, Pensions etc are always a little more complex than people want to believe, which is why it's always best to sit down with someone personally and get the information 1st hand.

 

Info above is correct tho, although (& i'm sure you get it), co-contributions are based on a couple !

 

In terms of Gov't funding. Unfortunately things are very different over here, and this doesn't happen, however much or little you earn.

 

One of the biggest issues and concerns today, re self-employed individuals is the amount that they do/do not put into Super - mainly based on affordability.

 

Anyway, as mentioned above, and with most things, you are best talking to a professional to get the correct info.

 

Hope this helps a little. Sorry it's not any better news.

 

Cheers,