Andrew from Vista Financial

100% investment return Government co-contribution - Hurry!

    Recommended Posts

    Good afternoon.

     

    As we are fast approaching the end of the financial year anyone looking to utilise the Government Co-contribution incentive into Superannuation has not got long to do so.

     

    Below is an extract from the ATO website in relation to the co-contribution an how it works.

     

    Here is a quick example as well:

     

    Let’s say someone has $50,000 total income for this financial year the maximum that they will receive from the government is $397.

     

    Therefore supposing that they had not made any non-concessional contributions for this year and make a personal voluntary contribution to Super and are eligible for the Government Co-contribution they would receive a 100% return on their money as the government would match the $397.

     

     

    Super co-contribution income thresholds

     

    There are two super co-contribution thresholds - a lower income threshold and a higher income threshold. If you are eligible for the super co-contribution and your total income is equal to or less than the lower income threshold, you are eligible for the maximum super co-contribution amount. If your income is between the lower and higher income thresholds, when your entitlement is calculated it is subject to the taper/reduction rate.

     

    The taper/reduction rate is the amount by which your super co-contribution entitlement amount reduces as you move from the lower income threshold amount to the higher income threshold amount. You are not entitled to a super co-contribution once your total income is equal to the higher income threshold.

     

    [TABLE=class: cms_table_cms_table]

    [TR]

    [TD][/TD]

    [TD]Lower income threshold

    [/TD]

    [TD]Higher income threshold

    [/TD]

    [TD]What will I receive for every $1 of eligible personal super contributions?

    [/TD]

    [TD]What is my maximum entitlement?

    [/TD]

    [/TR]

    [TR]

    [TD]From 1 July 2009 until 30 June 2012

    [/TD]

    [TD]$31,920

    [/TD]

    [TD]$61,920

    [/TD]

    [TD]$1, up to your maximum entitlement.

    [/TD]

    [TD]Your maximum entitlement is $1,000. However, you must reduce this by 3.333 cents for every dollar your total income, less allowable business deductions, is over $31,920, up to $61,920.

    [/TD]

    [/TR]

    [/TABLE]

     

     

     

     

    Regards

     

     

    Andy

     

     

    Please note that this is general information only as should not be taken as financial advice.

    Edited by Andrew from Vista Financial

    Share this post


    Link to post
    Share on other sites

    Create an account or sign in to comment

    You need to be a member in order to leave a comment

    Create an account

    Sign up for a new account in our community. It's easy!

    Register a new account

    Sign in

    Already have an account? Sign in here.

    Sign In Now