[vc_row][vc_column][vc_column_text]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 contact@resourcesunearthed.com.au
Recommended Reading
Three end-of-financial year planning tips for mining & resources professionals
How salary sacrificing may help you retire with more
Five Key Financial Matters for Mining & Resources Professionals (Strategy Paper)
Resources Unearthed is a solutions hub that provides integrated financial, legal and business advisory services for executives, professionals and business owners in the mining and resources sectors.
Stratus Financial Group and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. This is general advice only and does not take into account your objectives, financial situation or needs, so you should consider whether the advice is relevant to your personal circumstances. You should also read the relevant Product Disclosure Statements (PDS) before making any financial decisions.[/vc_column_text][/vc_column][/vc_row]
