Giving super a helping hand

The Government’s Superannuation Co-contribution scheme helps low to middle income earners to save for their retirement. By making an after-tax contribution to superannuation, the Government will match $1.50 for each dollar you contribute up to a maximum of $1,500. If you earn less than $28,980 you are eligible for the full co-contribution which reduces by 5c for every dollar you earn over $28,980 up to the threshold of $58,980. The following table shows the amount you can contribute and the matching Government contribution based on income levels.

From 1 July this year, the matching contribution is no longer dependant on you being an employee. Most people will now be eligible, subject to income level, for the Government co-contribution. Here are some things you might want to consider:

	If your income is below $58,980 work out the amount you need to contribute to gain the $1.50 matching contribution. It is more tax effective to obtain the 150% Government contribution than to salary sacrifice (which will only save you a maximum of 16.5%).
	If your spouse’s income is below the threshold, make a contribution for them.
	Consider making a contribution for your children.

You should contact us if you would like help in maximising the benefits of this attractive subsidy.

Published : 14 September 2007