The super co-contribution is intended to aid eligible people to increase their retirement savings.
If you are considered as low or middle income earner and make self super contribution then Government will also make super contribution of maximum of $500 (2013/14).
The Government contribution depends on how much you contribute to your super fund. You don’t need to apply for Government co-contribution. Government has an eligibility criteria based on the information you provide in your tax return.
Eligibility criteria is as below:
• If you make one or more eligible personal super contribution to your super fund in the financial year.
• You must be below the high income threshold i.e. $48,516 for 2013/14.
• Your 10% or more of your earning comes from employment related activities or carrying on a business, or combination of both.
• You should not have Temporary visa at any time during financial year (New Zealand Citizens are eligible)
• Your fund should have TFN before you make personal co-contribution to your super fund.
You will not be allowed to any Government super co-contribution if you choose to claim your personal contribution as tax deduction in your tax return.
You will be able to claim a tax deduction for personal contribution if you are not an employee or small proportion of your income from the employment.
This include income from
• Personal business
• Government pension and allowances
• Foreign source income
Call Tax Accountants Cranbourne at 1300 300 106 for further information.