Andrew from Vista Financial

Government Co-contribution

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    Hey all,

     

    talking to a few Expats recently I have realised that the following may not be commonly known. This information may be of help.

     

    This is a good way of getting some more money in to your retirement pot (Super) if you are eligible.

     

    Generally most workers under 71 and that are PR earning under $58,980 will be. (some other eligiility criteria applies)

     

    The way it works is that if you make a voluntary after tax contribution to your Super then the Government will also add to it!!!!

     

    The max you can claim is $1.50 for every $1.00 you contributre up to a max Government contribution of $1,500.

     

    So for example anyone earning under $28,980 and meeting the eligibility criteria can pay in $1,000 each year and receive $1,500 from the Government.

     

    This Co-Contribution starts to reduce as you earn more than $28,980 and cuts out at $58,980.

     

    So for example:

     

    If you earn $40,980 and contribute after tax an amount of $1,000, you will be eligible for $900 from the Government.

     

    Of course the Governments money will have to go in to your Super as well but I think this is a great way of receiving a bit of (can I say, free Money!!)

     

    It does not have to be paid in a lump sum either, regular installments will also qualify.

     

     

    Regards

     

    Andy

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