It can be difficult to save for retirement. The Australian Government recognises this, and offers a co-contribution incentive to low income earners.
If you earn less than $51,021 (the upper limit for the 2016/17 financial year) and make a voluntary (post-tax) contribution to your super fund, the Government will also make a contribution.
The amount depends on how much you earn, and how much you contribute. If you earn less than $36,021 (the lower limit for the 2016/17 financial year), then the Government will match your contribution at a rate of 50%, up to a maximum of $500.
Depending on your eligibility and your total income you may qualify for the full Co-contribution of $500 by contributing $1,000 into your First Super account by no later than 30 June 2017*.
If you earn more than $36,021 the rate at which the government matches your contribution will reduce before cutting out altogether at $51,021.
If you’re eligible, you don’t need to apply for the co-contribution. As long as we receive the voluntary contribution and have your tax file number, the Australian Taxation Office will credit your super fund account automatically.
For more information please see the Australian Tax Office websites
Super co contribution section.
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*All money must be received by 29 June 2017