A Financial Services Partners Adviser can help assess how the Government co-contribution can help you reach your retirement goals.
What is a Government co-contribution?
If you make a personal contribution to superannuation from your after tax income (called a non-concessional contribution), you may be eligible to receive a co-contribution from the Government. The Government co-contribution is a benefit to help low to middle income earners boost their retirement savings.
You must satisfy all of the following conditions to be eligible for a co-contribution:
- you must make a personal after-tax contribution
- your assessable income (plus reportable fringe benefits and reportable employer super contributions) is less than $61,920.
- at least 10% of your income must come from a business and/or employment
- you do not hold a temporary resident visa at any time during the year
- you lodge an income tax return, and
- you are under the age of 71 at the end of the financial year.
The Government will pay a $1 co-contribution for every $1 of eligible contributions you make, up to $1,000.
If your assessable income (plus reportable fringe benefits and reportable employer super contributions) is more than $31,920, the maximum co-contribution reduces by 3.3333 cents for each dollar of excess income up to $61,920. A co-contribution is not payable if income exceeds $61,920.
What kind of goals can Government co-contributions be used for?
Government co-contributions are suitable for people who:
- meet the eligibility criteria
- wish to build retirement savings
- are eligible to contribute to superannuation
- have the capacity to save additional money
- are comfortable that their savings are not accessible until they reach retirement (after preservation age).
Your Financial Services Partners Adviser can determine if you can access the Government co-contribution, after they consider your needs and objectives. They can also determine which other superannuation strategies can best meet your needs.
Talk to us about how Government co-contributions might work for you
If you are ready to see how the Government co-contribution can work for you as part of your superannuation strategy, we can match you with a suitable Financial Services Partners Adviser who will be happy to begin working with you to create a financial plan that's right for you.
To get started, please use our adviser matching service.