GET READY FOR YOUR TAX RETURN 2016
Government Co-contribution up to $500:
If you are on a lower income, the Australian Government is contributing 50 cents toward your super for every $1 extra you contribute to your super, up to a maximum of $500 a year. This is called the co-contribution scheme.
Eligibility for the super co-contribution:
You are eligible if:
- your total income (including assessable income, fringe benefits and reportable super contributions) for the financial year 2015-16 is less than $50,454.
- 10% or more of your total income comes from eligible employment-related activities or carrying on a business, or a combination of both.
- you are less than 71 years old at the end of the financial year.
- you did not hold a temporary visa at any time during the financial year (unless you are a New Zealand citizen or it was a prescribed visa).
- make an after-tax contribution before 30 June 2016.
- you have lodged your tax return for the financial year.
How much you will receive depends on your income:
If you earn $35,454 or less in 2015-16, then you will qualify for the full $500 from the Australian Government.
Super co-contribution and tax:
The super co-contribution is:
- Not subject to tax when it is paid to your super fund.
- Not included as income in your tax return.
What I need to do?
If you are eligible:
- Make an after-tax contribution up to $1,000 before 30 June 2016.
- Lodged your tax return for the year ending 30 June 2016.
- ATO will pay co-contribution directly to your super fund account.
This is a general advice, for more information and to discuss your individual case please contact us