Boost your super with up to $500 from the government
This article was written by our friends at GigSuper – a superannuation fund designed specifically for people who are self-employed.
We’re about to tell you something that surprises nearly every self-employed person that we tell…
There’s a way to get the government to put up to an extra $500 into your super account every year.
To take advantage of this incentive, you need to :
- make a personal contribution into super
- Earn less than $53,564 per year
- Have not held a temporary visa in Australia this financial year
If you meet the criteria listed above, keep reading or visit GigSuper to get started!
What we’re talking about is an incentive provided by the government called the Government Co-Contribution.
Here’s how it works:
If you earn somewhere between $0 and $38,564 per year, then for every dollar that you personally contribute to super, the government will contribute another 50 cents – up to a maximum of $500.
In other words, if you contribute $1000 for the year – which is only $20 per week – the government will top up your contribution with an extra $500 into your super account at the end of the year.
If you’re in the next bracket and you’re earning between $38,565 and $53,564 you’re also eligible, but the difference is that as your income gets higher, the maximum amount of this benefit reduces.
So, for example, someone who is earning $46,000 per year that contributes $1,000 will get a $252 government co-contribution.
The other great thing about all this? There’s generally no paperwork required.
If you’re eligible, the Government Co-Contribution automatically gets credited to your super account once you’ve done your tax return – as long as you haven’t claimed those contributions as a tax deduction.
But like many things to do with getting tax incentives from the Australian Taxation Office (ATO), there are some additional eligibility criteria. We’ve covered the big ones here, but you should check the ATO website under Government Co-contribution to see a full list of the eligibility criteria.
If you’re self-employed, GigSuper makes it super easy to get your super sorted. In 3 simple steps your retirement saving will be all automated, which lets you get on with whatever you do best. So if you’re looking for an easy way to take advantage of the Government Co-Contribution, simply visit GigSuper and you’ll be sorted in no time!