Increase your retirement savings and take advantage of government initiatives such as the Government co -contribution and the Spouse Contribution Tax Offset.

 

 

GOVERNMENT CO-CONTRIBUTION
The Government Co-contribution is ascheme where the Government pays $0.50 for every $1 that an eligible person contributes (up to a maximum of $500) into super. The amount of the co-contribution depends on your assessable income – the less you earn, the more you will get from the Government. The maximum
co-contribution the Government will pay is $500 per year.

 

You may be eligible for a co-contribution if you:
▪▪ Make an after-tax contribution (non-concessional contribution) in the financial year prior to 30 June.
▪▪ Earn 10% or more of your income from eligible employment, running a business, or a combination of both
▪▪ Are a permanent resident aged under 71 at the end of the financial year in which you make a payment
▪▪ Lodge a tax return for the relevant financial year that you have made the contribution.
▪▪ Earn less than $50,454 (2015/16) per year (including assessable income, fringe benefits and super contributions)

 

How can I receive the government co -contribution ? To receive the government co-contribution you will need to lodge a tax return for the financial year. The government will then calculate how much you are entitled to. Assuming you’re eligible, the government will pay the co-contribution directly to your superannuation fund.

 

          Your Total Income                                                                      Co-Contribution  Available                 Your   Contribution

 $35,454 Or less(Lower income threshold*)                                              $500                                                        $1,000

 $38,454                                                                                              $400                                                $800         

 $41,454                                                                                              $300                                                $800

 $44,454                                                                                              $200                                                $500

 $47,454                                                                                              $100                                                $200

 $50,454 or more (higher income threhold)                                   $0        

 

Source: ATO

* For every dollar you earn above the lower income threshold, your maximum entitlement
is reduced by 3.3333 cents.

 

 

SPOUSE CONTRIBUTION  TAX OFF SET

Spouse contributions involve making a contribution to your spouse’s super account for which you may receive a tax offset of up to $540. Introduced by the Government to encourage couples to save for their retirement, spouse contributions are a tax-effective way to add to your spouse’s super account. Spouse contributions are ideally suited to couples where one has a low or no income, or where one has a much higher super balance than the other. Eligible couples must be married or defacto (same-sex couples are included).

The contributing spouse can be of any age, however the receiving spouse must be under the age of 65 (if not working) or under age 70 if they have
worked for at least 40 hours within a consecutive 30-day period.

Spouse contributions count as non-concessional contributions which means they are included in your spouse’s non-concessional contributions cap.

 

                       Spouses Income*                                                     Tax Offset for Contributing spouse
 

                 Under $10,800 Lesser of:                                                •• spouse contribution x 18% or

 

                  •• $540 Between $10,800 and $13,799                        18% of the lesser of:
                                                                                                                  •• $3,000 – (assessable income – $10,800) or

                                                                                                                  •• spouse contribution

 

                  $13,800 and over                                                                Nil

 

* Includes assessable income plus reportable fringe benefits plus reportable superannuation contributions

 

How can I receive the spouse super contribution tax offset ?

The contributing spouse claims the spouse contribution tax offset in their tax return for the year the contribution is paid.

 

BENEFITS OF BOOST YOUR

 

SUPER STRATEGIES

▪▪ Improve your ability to accumulate wealth. Earnings within superannuation are taxed at 15% (this may be lower than your marginal tax rate which you would pay outside of superannuation). With its favourable tax environment, super provides more fertile ground for wealth to accumulate than if you were to invest the same money
outside of super.

▪▪ Factors such as interrupted work patterns and changes in occupation can make it difficult for one partner to accumulate enough superannuation for retirement. Spouse contributions and Government Co-contributions can assist to equalise superannuation balances between couples, to maximise income in retirement.

▪▪ Additional Contributions can assist to help towards insurance premiums through superannuation in a way to effectively manage your cash flow.

 

Contact us

For More Informaztion or financial advice, please Charles Choong on 03 9654 9886, or send an email to us on firstpacificfs@gmail.com.

 

 

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This information has been prepared by Perpetual Superannuation Limited (PSL) ABN 84 008 416 831, AFSL 225246, RSE L0003315 (as Trustee
for the WealthFocus Super Plan and Pension Plan ABN 41 772 007 500). The PDS for the WealthFocus Super Plan and Pension Plan, issued by PSL,
should be considered before deciding whether to acquire or hold units in the fund it contains general information only and is not intended to provide
you with financial advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable
for your circumstances and we recommend that you seek professional advice. To the extent permitted by law, no liability is accepted for any loss
or damage as a result of any reliance on this information. The information is believed to be accurate at the time of compilation and is provided by
Perpetual in good faith. 1744_PBYSCF_1113

 

Resouced From Perpetual

​https://www.perpetual.com.au/~/media/Perpetual/PDF/RESOURCES/Educational%20brochures/Co-contribution_Flyer-WL.ashx?la=en