Andrew from Vista Financial

100% investment return Government co-contribution - Hurry!

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    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]



    [TD]Lower income threshold


    [TD]Higher income threshold


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


    [TD]What is my maximum entitlement?




    [TD]From 1 July 2009 until 30 June 2012






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


    [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.














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

    Edited by Andrew from Vista Financial

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