Super Co-Contribution Scheme Australia
No I am not joking – the Australian Government is actually giving away money to low to middle income earners. This is through the scheme call the Superannuation Co-contribution scheme in which the government will match each dollar you put into your super with $1.50 upto $1000.
As of 5th August 2008 this article is still current – but remember, a scheme as good as this could end at a moments notice.
How does it work?
The Super Co-Contribution scheme helps low and middle class income earners – they do this to help you have money for retirement as otherwise they will be paying it back in pensions in years to come.
Condition of Super Co-Contribution Scheme
- You must earn less than $28,980 per year.
- Pay $1000 cash on your own to super before last week of financial year.
- Must be under 71years of age.
- Your total income is less than $58,980 (this is indexed annually to reflect changing average wages)
- 10% or more of your total income is from eligible employment, running a business or a combination of both.
- You do not hold an eligible temporary resident visa at any time during the year
Example of Super Co-Contribution Scheme
Alex deposits $1000 a week before he meets with his accountant into his super fund as a bonus deposit. Alex tells his accountant, then prepares the tax return to inform the ATO of this contribution to his super. Within 4 weeks, the Australian Government will pay an extra $1500 into Alex’s super account.
ATTENTION: You should claim your Lost Super before doing this!
More details can be found at the official ATO website on this topic by clicking here.
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