Don’t panic yet, it’s not Christmas time. We’re talking about the end of financial year, 30 June. It’s a great idea to add extra to your super fund before the year is up. And if you do decide to, it’s important to make sure your extra super payments arrive at your super fund well ahead of 30 June so that your money is allocated to your account in the correct financial year. If it’s not, it could mean that you miss out on receiving the Government co-contribution.
To take advantage of the Government’s co-contribution scheme, you’ll need to make a personal (after-tax) contribution before 30 June. The amount you’ll receive from the Government will depend on your income. If your gross salary is $33,516 or less, and you make an after-tax contribution of $1,000, the Government will pay up to $500 into your super account – that’s free money! If you earn over $33,516, but less than $48,516, you may still qualify for a co-contribution payment, but the amount you receive decreases as your salary increases. The payment cuts out altogether at $48,516.
If you’re self-employed, and want to make a super contribution, it’s also important to get the payment to your fund in plenty of time. Plus, you’ll have to let them know if you intend to claim the amount as a tax deduction, as it will affect the way the amount is taxed. There is usually a simple form you’ll need to complete and return to your fund.
Keep in mind that there are limits or caps on the amounts you’re allowed to contribute, according to the type of contribution you’re making. You need to be aware of them to ensure you’re making the most of the facility but also avoiding any possible penalties you may incur by exceeding these limits. Your super fund’s website will have details of the current limits.
And most importantly, if you want help calculating the amount you can contribute to super, considering taxation issues or reviewing your contribution limits, speak to your super fund or a qualified financial planner.
We’re here to help
If you’re a StatewideSuper member or looking to become one, visit the website and check out a wealth of information about contributions. While you’re there, why not use our calculator to work out how extra payments can benefit you?
If you want a more personalised plan showing how contributing extra to your super fund can improve your retirement, call us today on 1300 65 18 65 and book in to see one of our financial planners for a free, no-obligation appointment. And because we’re an industry fund, we operate on a fee-for-service basis which means that our planners don’t charge or receive commissions!
The information provided above is of a general nature. It does not consider your specific needs nor is it intended to be financial advice. You should obtain independent financial advice, and consider the applicable Product Disclosure Statement before making an investment decision.
Financial information and advice may be provided by representatives of the Fund’s Administrator and wholly owned company, Statewide Financial Management Services Limited, ABN 69 092 109 209 Australian Financial Services Licence No. 239063 or by authorised representatives of Quadrant First Pty Ltd ABN 78 102 167 877 AFSL No. 284443. Fees may apply for financial planning advice.
Statewide Superannuation Pty Ltd ABN 62 008 099 223 (AFSL 243171) Trustee and RSE Licensee of Statewide Superannuation Trust ABN 54 145 196 298.
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