Government Co-contribution

[Andrew from Vista Financial]

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