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.
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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.