How to get FREE MONEY into your super fund…
You know how much I love free money, and the government co-contribution is something that anyone earning below $48,516 can take advantage of in order to help you build your superannuation balance for later.
Who can get FREE money?
If you earn below $33,516 then you are eligible for full co-contribution, and between $33,516 and $48,516 you’ll receive some benefit also.
Basically if you contribute up to $1,000 a year, with after-tax dollars (that’s money that you’ve already paid tax on), and you have worked and earned an income, you will be eligible for the co-contribution. The co-contribution is a maximum of $500, that’s 50 cents for every $1 you put in.
Pretty good, pretty simple.
The challenge is…
The challenge is of course, those who are earning less than $33K often don’t have a lot to spare. But, if you can manage to save just $20 a week, you’ll be able to do this.
Another way I see this work really well is for women (or even men) who take some time off following the birth of a child. Potentially due to working for only part of the year, your income may fall below the $48K threshold, a great time to take advantage of this FREE MONEY.
I guess anytime that you are working for shorter periods of time, and taking a break, it’s worth considering whether or not you might be able to access this.