Don’t miss the govt co-contributions for FY11!
We all like the thought of making easy instant money, and thanks to the Government with the Superannuation Co-Contribution it’s possible.
Provided you meet the eligibility requirements (see below), for each $1 non concessional (personal after tax) contribution you make into super before 30 June 2011, the Government will match it by $1, up to a maximum co-contribution of $1,000.
This can represent an instant return of 100% on your money!
If your income for the 2011 financial year is less than $61,920 (subject to the requirements stated below), we strongly suggest you consider making a non concessional personal contribution into super before 30 June.
To calculate the estimated maximum co-contribution for you, please contact JBS to discuss your personal circumstances.
Below is further information on the Government Super Co-Contribution.
Should you have any questions don’t hesitate to contact the JBS team.
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Eligibility Requirements
You will be eligible for the co-contribution if all of the following apply:
- you make a personal super contribution by 30 June each year into a complying super fund and don’t claim a deduction for all of it
- your total income (less any business deductions) is lower than the higher income threshold of $61,920
- 10% or more of your total income is from eligible employment, carrying on a business or a combination of both
- you are less than 71 years old at the end of the year of income
- you do not hold an eligible temporary resident visa at any time during the year, unless you are a New Zealand resident or holder of a prescribed visa
- you lodge your income tax return for the relevant financial year.
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Income Thresholds
| Lower income threshold | Higher income threshold | What will you receive for every $1 of personal super contributions? | What is your maximum entitlement? | |
| $31,920 | $61,920 | $1 for every $1, up to a maximum super co-contribution of $1,000 a year. | Your maximum entitlement is $1,000. However, you must reduce this by 3.333 cents for every dollar your total income, less business deductions is over $31,920, up to $61,920 | |
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Personal (non concessional) Super Contributions
Personal super contributions are the amounts you contribute to your super fund from your after-tax income.
These are in addition to any compulsory contributions your employer makes on your behalf and do not include contributions made through a salary sacrifice arrangement.
The following super contributions do not attract the co-contribution:
- super guarantee contributions paid by your employer
- salary sacrifice contributions – these are before-tax contributions made by your employer and are reportable employer super contributions
- personal contributions for which you have claimed an income tax deduction
- contributions made by your spouse or any other party on your behalf.
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Payment of the Co-Contribution
If you are entitled to a super co-contribution, it will be paid to your fund after all of the following have occurred for a financial year:
- you have made eligible personal super contributions to your super fund or RSA before 30 June
- you have lodged your income tax return
- you did not claim an income tax deduction for all of your personal super contributions in your income tax return
- your super fund has reported your personal contributions to us
- we have received any additional information required.
The super co-contribution is tax-free. However, the earnings on the super co-contribution will be taxed like any other earnings within the super fund
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