Home Superannuation The Superannuation Co-Contribution – How To Get An Extra $500 Superannuation For Free

The Superannuation Co-Contribution – How To Get An Extra $500 Superannuation For Free

written by Shelley Marsh 19/06/2014
superannuation co-contribution

I am so excited – this year I qualify for the government’s superannuation co-contribution scheme and I am absolutely going to take it up!!  Let’s face it, there are not many ways you can get $500 for free, particularly from the Government!!!  However, this is one of them and it is really easy!!! Who would have thought!!!

So here is how you do it!  Pretty much to qualify for the full benefit of $500 you have to earn less than $33,516 and put an after-tax contribution of $1000 into your superannuation fund by the 30th of June 2014.  As long as you have put the contribution into your fund and you file your tax-return, the $500 will automatically be paid into your fund by the government.  (Click here to see the full criteria).

If you earn between $33,516 and $48,516, you will still get some benefit just not the full $500.  (Click here to check the calculator on the ATO site to see how much you will get).  So at its best the superannuation co-contribution scheme means you put in $1,000 and they give you $500 for free! There are not too many legitimate investments that I know of in which you can a 50% return, for zero risk, guaranteed.  It is the closest thing I have seen to money for nothing.  Nothing is better than that 🙂

Try and take advantage of this if you do qualify.  This is a fantastic scheme to help those of us who are working part-time while looking after our little-ones to continue to build our superannuation balances.  Sadly stay at home mums do not qualify for the co contribution, as while they are doing amazing work, this work is unpaid (unless the ATO start counting hugs and kisses :-)).  However, click here if you are a stay at home mum to read about other ways you can boost your superannuation balance instead.

p.s To find out how to make an after tax contribution to your superannuation fund give them a call.  I rang mine and the process is really easy.

If you liked this you might also like:

How to boost your superannuation balance while you are a Stay At Home Mum

Your superannuation and your children: one thing you really should know

How to pay off your mortgage faster

Women and superannuation: how do you make sure you have enough?

3 easy ways to find your lost superannuation

How much do you save by shopping at Aldi?

Disclaimer:

The information contained in this post is general in nature and does not constitute financial advice.  Please see your financial advisor or accountant for advice specific to your individual circumstances.

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13 comments

Emma Fahy Davis 19/06/2014 at 10:43 pm

Ooooh I am going to see if Willie qualifies, every little bit counts right! He wouldn’t be able to scrape together the $1K contribution for this fin year, but worth remembering for next year.

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Shelley Marsh 24/06/2014 at 7:07 pm

Yes Emma, absolutely every bit helps! It is definitely one to remember for next year.

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Trish 20/06/2014 at 9:47 am

Thanks for the reminder.

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Shelley Marsh 24/06/2014 at 7:08 pm

No worries Trish! 🙂

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Grace 20/06/2014 at 3:46 pm

This is so good to know! I wonder if I qualify?! Doesn’t hurt to find out! You are a wealth of information, lovely lady! x

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Shelley Marsh 24/06/2014 at 7:08 pm

No worries Grace! It is always good to check if you qualify 🙂

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Rosie 20/06/2014 at 4:24 pm

Oh dear, looked up the criteria and your useful link on how to top up super when a SAHM and, no, still too poor. Love your posts though.

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Shelley Marsh 24/06/2014 at 7:09 pm

Hi Rosie, thanks I am glad you liked it! 🙂

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Bec @ The Plumbette 20/06/2014 at 9:15 pm

I should be looking to put money into my super since not working just to add something but it’s one of those investments that gets put to the side when you have kids and try and make ends meet on one income. I’m gonna check your other posts about ways to increase super. 🙂

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Shelley Marsh 24/06/2014 at 7:10 pm

Hi Bec, yes I agree it is a difficult one to think about once the little ones come along and there are so many other uses for the money!

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Jody at Six Little Hearts 21/06/2014 at 9:57 am

Oh that’s nice! Is it only applicable to the individual (ie I earn $0) or a couple’s income? – (Hubby earns more than the threshold to qualify.) My poor super is barely worth glancing at! 😀

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Shelley Marsh 24/06/2014 at 7:11 pm

Hi Jody, it is judged on each individuals income unfortunately 🙁

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Sort Out Your Superannuation 09/09/2014 at 6:22 pm

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