Tax Tip 2019 : More Free Money from the Government

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

  1. 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.
  2. 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.
  3. 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.
  4. 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.

ACTION

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.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s