Are you able to get more money into your superannuation with very little sacrifice? If you are an employee and your taxable income is less than $61,920 then the answer is probably yes – you may be entitled to the superannuation co-contribution scheme.
What is it?
The superannuation co-contribution scheme means that on top of your employer putting some of your income into your super fund, you can also add a little extra. And, the best part is this: The government will match your donations up to $1000* per year!
You must make the extra payment from your after-tax income to your super fund before the 30th June each year to be eligible.
How?
The choice is up to you. You can ask your employer to take an extra $40-$80 per month out of your after tax income and deposit it into your super fund for you. This is only $10 or $20 per week and is hardly noticeable once you get started. Or if you prefer you can add a lump sum deposit to your super fund in one go. No matter which method you choose, these savings now can make a massive difference to your wealth later in life, especially with the government doubling the amount you save!
What if I’m self-employed?
If you are self-employed you may be able to make a claim for personal superannuation contributions you make on your own behalf up to a certain amount. This varies depending on your individual circumstances and the contribution must be made by June 30 of each year. Ask your Etax Accountant for more information if you are unsure how much you can claim.
My income is greater than $61,920
If you earn more than $61,920 then ask your employer about how you can salary sacrifice some of your pre-tax income into your super fund. This will reduce your income on your PAYG certificate because the amount sacrificed does not appear as income, consequently decreasing the amount of tax you pay.
Want more information?
If you would like help working out how you can benefit from the super co-contribution scheme or more information about salary sacrificing please contact us by phone or email.
*The Government co-contribution is up to $1000 for incomes up to $31,920. For every dollar earned over $31,920 and up to $61,920 you should subtract 3.33 cents from the amount the Government will match.