Sound Too Good to be True?
Usually we would agree that if things sound too good to be true they are; BUT the government co-contribution scheme still exists and they will pay you up to $500 for your $1,000 contribution and by our maths that's a 50% return. Here's how it works:
The Government superannuation co-contribution scheme matches part or all off your after tax superannuation contributions helping you to save for your retirement. If you are eligible for the super co-contribution payment the government will match your contributions at a rate of 50% up to a maximum of $500.
But Wait There's More - The 50% return is even TAX FREE to you!
There are eligibility requirements and an income threshold as follows:
- You must have made a voluntary after-tax contribution to your superannuation fund; and
- Your total annual income must be less than $50,454; and
- At the end of the financial year you will need to be under 71 years old; and
- You must lodge an income tax return; and
- You must have received 10% or more of your total income from running a business or eligible employment, or a combination of both; and
- You must not at any time during the year you have not held a temporary residents visa (NZ Special Class visa holders are eligible)
No application is needed! All you need to do is make after tax payments into your superannuation fund, either as a lump sum or as a number of smaller payments, let us lodge your Income Tax return, and voila!!. The ATO will work out your eligibility and the co-contribution will be made as applicable.
For more information give us a call on (07) 54391600 or CLICK HERE to make an appointment with one of our specialists.
Still Want More? Then why not employ your children?
Set your children's super funds up and give them a great start to their own financial future. If you run a business then the ability to "stream" income to your children is somewhat limited. But, have you thought about employing your children? Make them actually work for their money and then they can receive the full benefit of the $18,200 tax free threshold and if you were to establish a super fund for them then they may also be eligible for the co-contribution. The strategy we have developed works for many of our clients already and has a neutral affect on family Cashflow too. For more information give us a call on (07) 54391600 or CLICK HERE to make an appointment with one of our specialists.
What are you waiting for? By making after voluntary payments of $1,000 into your superannuation fund by 30 June you may be eligible to $500 tax free.
While you are at it why not CLICK HERE to take advantage of our FREE NO OBLIGATION RETIREMENT REVIEW.