– for whom
Superannuation co-contribution benefits your wealth accumulation, but your contribution circumstances need to be ‘eligible’.
The government has tightened the purse-strings again this year, but they are still giving away money for those who are ‘means-test’ eligible; and who have made a Non-Concessional Contribution1 to a complying superannuation account.
You make an eligible personal contribution to your superannuation account, then some months after the end of the financial year, the government makes a co-contribution to your fund (and their contribution does not form part of your taxable income).
Yes there are some rules2 that need to be satisfied before you are eligible:
- Your income needs to be within the prescribed range;
- You need to have received income from paid work;
- The amount of any contribution made will only be considered up to the statutory ‘cap’; and
- Your contribution must be in the superannuation trustees’ hands before 30 June.
As a wealth management strategy for those who are eligible, this is a winner!
What are some superannuation co-contribution benefits? A couple of suggestions:
- Accumulation (adding to the value of the amount building for your eventual retirement); or
- Pay for some otherwise unaffordable life insurance (held in the name of the superannuation trustee on your behalf).
Take a look at the table linked below and if you have any questions about best management of your superannuation accounts Contact Us and we’ll work with you to resolve your concerns.
1 Non-Concessional Contributions – or NCCs – are contributions for which you are not claiming a tax deduction (i.e., made from tax-paid dollars)
2 Refer our post for the criteria applicable for the current financial year: 2012.
