We could all do with a little boost to our retirement savings. And the Federal Government’s co-contribution scheme may help. It can top-up your balance with up to $500 in additional funds each year.
But you’ll need to hurry. With the end of the financial year fast approaching, you only have a few weeks left to take advantage of the initiative for this year. Here’s what you need to know.
How does it work?
If you make additional (after-tax) payments into your super the government will provide a top-up if you meet the eligibility conditions.
That means for every dollar you contribute (up to $1,000) the government will match it with an additional 50 cents. That’s up to $500 in super contributions from the government.
How do I claim my additional co-contribution?
It’s easy, all you have to do is file your annual tax return and the Australian Taxation Office (ATO) will automatically assess your eligibility and pay any entitlement into your super account. As long as you’ve made additional contributions and lodged a tax return the ATO will take care of the rest.
To receive the government top-up you’ll need to make an additional contribution and meet the following criteria:
- You’re a permanent resident and under 71 years of age at the end of the financial year
- You earn 10% or more of your total income from employment, running a business, or a combination of both
- You earn a total income of less than $53,564 in the 2019/20 financial year
- You have not held a temporary resident visa at any time during the year (unless you are a New Zealand resident or hold a prescribed visa)
- The total balance of all of your super accounts was less than $1.6 million on 30 June 2019
- You do not contribute more than your non-concessional contribution cap in the 2019/20 financial year.
Learn more by visiting the ATO website.
If you’re working then your employer should already be making the standard super guarantee contribution of 9.5%. To qualify for the co-contribution scheme you need to make an additional after-tax payment towards your super (salary sacrifice contributions do not count as they are before-tax contributions).
That means paying money directly into your super account.
You should have a BPAY number for your super account. Simply use the BPAY details to deposit money into your super account like you would any other payment.
If you’re not sure about your BPAY details simply call us on 1300 655 002.
To claim your government co-contribution you need to make any after-tax contributions before June 22 and lodge an income tax return for the financial year.
Superannuation is a long-term investment in your future. So make sure you’re taking advantage of government provided incentives. If you have any questions about co-contributions, deadlines, or how we can assist please call us on 1300 655 002.
Authorised by Togethr Trustees Pty Ltd (ABN 64 006 964 049; AFSL 246383), the trustee of MyLifeMyMoney Superannuation Fund (ABN 50 237 896 957; SPIN CSF0100AU). Catholic Super and MyLife MySuper are divisions of MyLifeMyMoney Superannuation Fund. Financial advice services may be provided to members by the trustee’s related entity.
Togethr Financial Planning Pty Ltd (ABN 84 124 491 078; AFSL 455010). The information contained herein is general information only. It has been prepared without taking into account your personal investment objectives, financial situation, or needs. It is not intended to be, and should not be, construed in any way as investment, legal or financial advice. Please consider your personal position, objectives, and requirements before taking any action.