Where can you get up to 100% return on your savings?
Thanks to the Federal Government's Co-contribution Scheme, you can boost your superannuation with up to an extra $1000 by simply putting in extra money yourself.
The government implemented the Scheme in 2003-04 to encourage Australians to make personal contributions to their superannuation, and many of us are taking advantage of this offer. In the 2009/2010 financial year the total Government Co-contribution amount was about $1.4 billion* - a sizeable handout from the government just for contributing to your own retirement.
If you earn less than $61,920 during the 2010/11 financial year and make a personal after-tax super contribution, the Government will match your money up to $1,000. There are of course eligibility requirements to qualify for the Scheme.
For instance, before 30 June 2011 you must:
• earn less than $61,920 p.a;
• obtain 10% or more of your income from eligible employment (to check, call the Tax Office on 13 10 20 or visit ato.gov.au);
• be a permanent Aussie resident;
• lodge an Income Tax Return for this financial year;
• be under 71 years of age;
• make your own personal after tax contributions to your super;
• and make sure your super fund has your Tax File Number
It's easy to make personal contributions, most super funds allow you to drip feed into your account on a regular basis or make a one-off payment whenever you like.
Your Government Co-contribution is calculated after you lodge your tax return. So, you don't need to do anything else! After you've lodged your tax return, the Tax Office will work out your co-contribution entitlement and then pay it straight into your super account. It's that simple.
How much could you receive?
Don't miss out on free money!
Remember, your super fund must have your Tax File Number to accept any personal contributions to your super account. Also, if your TFN isn't on record with your super fund you may even be getting taxed at the highest rate of 46.5% on the contributions your employer makes to your super account.
Self employed?
The co-contribution is also available to you!  You must make a personal contribution without claiming a tax deduction for it.  The Tax Office will work out your co-contribution from information on your tax return and details of contributions provided by your super fund.  You must earn at least 10% of your total income from employment or running a business.  (Your income is assessable income plus reportable fringe benefits less business income deductions.)
If you haven't already taken advantage of this generous option, get on board so you benefit from the Government Co-contribution Scheme.
By Brendan O'Farrell
Chief Executive Officer Intrust Super
The information contained in this document is of a general nature only, and does not take into account your individual situation, objectives and needs. You should consider the appropriateness of the general information having regard to your own situation before making any investment decision. A Product Disclosure Statement is available at www.intrust.com.au or call us on 132 467 for a copy. While Intrust Super has no reason to believe that this information will not provide an accurate view of the material covered, Intrust Super does not accept liability for any errors or omissions in the content of this information.
The Trustee of Intrust Super is IS INDUSTRY FUND Pty Ltd | ABN: 45 010 814 623 | AFSL No: 238051 | RSE Licence No: L0001298 | RSE Registration No: R1004397 | Intrust Super ABN 65 704 511 371 | SPIN: HPP0100AU
* http://www.ato.gov.au/super/content.aspx?doc=/content/00258543.htm&page=57&H57

Where can you get up to 100% return on your savings?

Thanks to the Federal Government's Co-contribution Scheme, you can boost your superannuation with up to an extra $1000 by simply putting in extra money yourself.

The government implemented the Scheme in 2003-04 to encourage Australians to make personal contributions to their superannuation, and many of us are taking advantage of this offer. In the 2009/2010 financial year the total Government Co-contribution amount was about $1.4 billion* - a sizeable handout from the government just for contributing to your own retirement.

If you earn less than $61,920 during the 2010/11 financial year and make a personal after-tax super contribution, the Government will match your money up to $1,000. There are of course eligibility requirements to qualify for the Scheme.

For instance, before 30 June 2011 you must:

  • earn less than $61,920 p.a;
  • obtain 10% or more of your income from eligible employment (to check, call the Tax Office on 13 10 20 or visit ato.gov.au);
  • be a permanent Aussie resident;
  • lodge an Income Tax Return for this financial year;
  • be under 71 years of age;
  • make your own personal after tax contributions to your super;
  • and make sure your super fund has your Tax File Number

It's easy to make personal contributions, most super funds allow you to drip feed into your account on a regular basis or make a one-off payment whenever you like.

Your Government Co-contribution is calculated after you lodge your tax return. So, you don't need to do anything else! After you've lodged your tax return, the Tax Office will work out your co-contribution entitlement and then pay it straight into your super account. It's that simple.

How much could you receive?

If your after tax voluntary contribution is:

$1,000

$800

$500

$200

And your income is:

Your Government Co-contribution is:

$31,920 or less

$1,000

$800

$500

$200

$37,920

$800

$800

$500

$200

$41,920

$667

$667

$500

$200

$45,920

$533

$533

$500

$200

$49,920

$400

$400

$400

$200

$53,920

$267

$267

$267

$200

$57,920

$133

$133

$133

$133

$61,920 or more

$0

$0

$0

$0

Don't miss out on free money!

Remember, your super fund must have your Tax File Number to accept any personal contributions to your super account. Also, if your TFN isn't on record with your super fund you may even be getting taxed at the highest rate of 46.5% on the contributions your employer makes to your super account.

Self employed?

The co-contribution is also available to you!  You must make a personal contribution without claiming a tax deduction for it.  The Tax Office will work out your co-contribution from information on your tax return and details of contributions provided by your super fund.  You must earn at least 10% of your total income from employment or running a business. (Your income is assessable income plus reportable fringe benefits less business income deductions.)

If you haven't already taken advantage of this generous option, get on board so you benefit from the Government Co-contribution Scheme.

* http://www.ato.gov.au/super/content.aspx?doc=/content/00258543.htm&page=57&H57