Believe it or not there is still the possibility to get some free money from the government. The superannuation co-contribution is hanging on in there for a little longer so make use of it if you can and grab up to $500 of free cash.
Even better, why not pop some $ into the kids’ superfunds and allow them to get the co-contribution?
To access the co contribution the receiver of the contribution needs to fulfil the eligibility criteria, the main criteria being as follows
- The work test… At least 10% of income must be from employment or running a business. The co-contribution is therefore not available for stay at home mums, but it is good for helping the teenage kids who are working part time.
- The income test …. Total income must be less than $52,697 to access some co-contribution and below $37,697 to get the full co-contribution.
- The age test …. Must be under age 71, and if over age 65 must also satisfy the work test of 40 work hours in 30 days.
- The balance test …. Superfund balance must be less than $1.6m
The maximum co-contribution is 50c for every dollar contributed as an after tax personal contribution to a maximum of $500. So if you put in $1,000 you will potentially get an additional $500 added to the account.
It’s easy, transfer up to $1000 of money from your personal bank account to your (or your kids superfund) as a personal contribution before 30 June. The tax office calculates the co-contribution and puts it in the superfund when the 2019 tax returns are lodged. There are no forms to fill in.