Don’t miss out on the Government co-contribution 01 Jun 2020

Blog / SMSF


If your client’s income (ie assessable income*, reportable fringe benefits and reportable employer super contributions) in 2019-20 is less than $53,564 and at least 10% of this income is derived from employment activities (including self-employment), your client may be entitled to the government super co-contribution.

To be eligible, the member needs to:

•    be under 71 at the end of 2019-20 and
•    if aged 65 or over, meet the work test or qualify for the work test exemption (to be able to make a personal contribution),
     and
•    have not exceeded their non-concessional contributions cap for 2019-20, and
•    have a total super balance below $1.6 million on 30 June 2019.

The maximum Government co-contribution is 50 cents for every $1 of eligible personal super contributions made in a financial year and is subject to an income test. The maximum co-contribution of $500 reduces by 3.333 cents for every $1 that the individual’s total income exceeds $38,564 and phases out once it reaches $53,564.

The income used to calculate the amount of the co-contribution is the sum of the assessable income7, reportable fringe benefits and reportable employer super contributions, less any amounts that the individual is entitled to claim as a tax deduction as a result of carrying on a business.

* Assessable income in this case excludes assessable FHSS released amounts.  .  

 



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Disclaimer and Warning
The information above is of a general nature only.  It should not be used as a source to make financial decisions.  It's also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status.  We recommend that if you are looking for advice on this matter, you should contact us.


 


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SOLOMON FORMAN SMSF SPECIALIST ADVISOR SMSF SPECIALIST AUDITOR Forman Financial Services SOLOMON FORMAN CERTIFIED FINANCIAL PLANNER® Forman Financial Services
 
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