This might be the easiest $500 you'll make, and the best part is, it goes towards securing your financial future.
Quick! There are only a few days left to lock in a free $500 from the government to go towards your super.
Confused? Haven’t heard of the government’s super co-contribution scheme before? Today is your lucky day.
What’s the co-contribution scheme?
The government’s super co-contribution scheme was designed to incentivise low-income workers to boost their super balance.
If you’re under the age of 71 and earn below $43,445, for every dollar you contribute voluntarily into your super the government will contribute 50c - up to $500 each financial year.
So if you contribute $1,000 into your super voluntarily, the government will throw in a free $500.
And if you are eligible and earn between $43,445 and $58,445, the government may partially contribute towards your super.
You can use the ATO calculator to get a rough idea of your entitlement.
Quick reminder: voluntary after-tax contributions are the ones you make on top of compulsory super contributions that your employer pays to on your behalf.
This scheme won’t apply for any salary-sacrifice contributions, or any personal super contributions that have been claimed as a tax deduction, but it will apply to after-tax contributions.
How do I apply for this scheme?
That’s the best part Flux Fam, you don’t have to!
Once you make a voluntary after-tax contribution to your superfund and lodge your tax return, the government will take care of the rest.
Once your tax return has been lodged, the ATO will work out if you’re eligible for the scheme, and if so, pay their contribution into your super automatically.
Quick side note: your superfund must have your tax file number on record for the government to be able to deposit its co-contribution into your super.
But you have to hurry…
To be eligible for this scheme in the 2023-24 financial year, you need to make your contribution before July 1.
And once we tick into the new financial year, you’ll be able to make a claim again for the 2024-25 financial year, and each year that you’re eligible.
So if you’re eligible, and make a $1,000 voluntary after-tax super contribution each year for three years, the government will have contributed $1,500 towards your super in that time.
Not bad hey?
There’s 5 days left Flux Fam, and free cash up for grabs! Woohoo!
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