Graduates and students working full time in the mining and resources sectors for part of the year may be eligible for a $500 boost to their superannuation account thanks to the Government’s superannuation co-contribution scheme.
It’s a little-known benefit that’s well worth looking into for income earners who earn less than what the Government considers a low-income threshold, which can also include spouses of high-income earners. We’re sure you’ll agree, when it comes to retirement savings – every dollar counts.
Depending on eligibility and conditions, which include making a personal (after tax) contribution to your superannuation, the Government may also make a contribution on your behalf up to a maximum of $500.
The Government’s co-contribution matches 50 cents in the dollar for your personal contributions up to an annual total of $1,000.
To be eligible, your income will need to be less the annual income threshold of $38,564. Co-contribution tiering occurs for income between $38,564 and $53,564 and if your income exceeds $53,564, you will not be eligible for the co-contribution.
The process is simple and managed by the ATO. After your tax return is lodged the ATO assesses your eligibility and makes a co-contribution to your superannuation account if you qualify.
The eligibility criteria include receiving at least 10% of the income from employment, lodging a tax return and meeting the standard rules for making non-concessional superannuation contributions.
Your next step…
The current superannuation contribution cap limits mean it’s more important than ever to begin retirement savings early. While the $500 co-contribution is a welcome bonus, proactively building wealth effectively within superannuation is an important consideration for all mining and resources personnel.
A range of strategies is available for your consideration in context of your overall financial circumstances, which include your career and lifestyle goals for the future.
Please contact me if I can be of assistance to review your current superannuation strategy and discuss any adjustments. Call +61 7 3007 2000 or email firstname.lastname@example.org
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