Free super this way!

24/05/2011

Provided by Mercer. The information in this article does not necessarily reflect the views of the Trustee.


If your income is less than $61,920 a year and you make after-tax contributions to your super, the Government wants to give your super a free boost.

For most people, relying just on compulsory employer super contributions accumulated over their working life won't usually provide enough savings for the retirement lifestyle they dream of and the Age Pension provides for only a very basic lifestyle.

The Government “co-contribution”, as it's known, is designed to encourage you to make after-tax contributions to your super to help you to save for your retirement. Simply, the Government will contribute $1.00 to your super for every $1.00 you contribute after-tax, up to a maximum co-contribution of $1,000 a year. The co-contribution reduces if your income over $31,920, and cuts out at $61,920.

The table below shows the maximum co-contribution based on income and after-tax contribution. There is a co-contribution calculator on thePlanning tools pagethat can help you work out how much you may be eligible to receive.

Your income per year

The Government's co-contribution if you make an after-tax contribution of:

$1,000

$500

$200

$31,920 or less $1,000 $500 $200
$33,920 $933 $500 $200
$37,920 $800 $500 $200
$41,920 $667 $500 $200
$45,920 $533 $500 $200
$49,920 $400 $400 $200
$53,920 $267 $267 $200
$57,920 $133 $133 $133
$61,920 and over $0 $0 $0


To take advantage of this scheme, you need to make an after-tax contribution to Lutheran Super by 30 June 2011.

As well as making regular contributions to your super from your pay, you can make a one-off lump sum payment or you can top up your regular contributions if you need to make the most of the co-contribution for the 2010/11 financial year.

You can make a BPAY payment through your internet or telephone banking facilities. You'll find your BPAY reference number in your account information on the Lutheran Super website. Sign in using your member number and PIN. Or you can download an Application to make a lump sum contribution form from the Forms & publications page or call the Helpline on 1800 635 796 to have one sent to you. If you make your contribution by cheque, be sure to allow time for it to clear so your contribution hits your account before the end of financial year deadline.

The Tax Office determines whether you qualify for a co-contribution based on your tax return and contribution information from Lutheran Super. If you are eligible to receive a payment, it will be paid automatically to your super account.

This information has been prepared by Mercer Outsourcing (Australia) Pty Ltd (MOAPL) ABN 83 068 908 912, Australian Financial Services Licence #411980. Any advice contained in this document is of a general nature only, and does not take into account the personal needs and circumstances of any particular individual. Prior to acting on any information contained in this document, you need to take into account your own financial circumstances, consider the Product Disclosure Statement for any product you are considering, and seek professional advice from a licensed, or appropriately authorised, financial adviser if you are unsure of what action to take. 'MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917. Copyright 2012 Mercer LLC. All rights reserved.

 

LCA Nominees Pty Ltd ABN 61 008 204 939 AFS Licence #240571, as Trustee for Lutheran Super ABN 93 371 348 387.

This website is provided by Mercer Outsourcing (Australia) Pty Ltd (MOAPL) ABN 83 068 908 912, Australian Financial Services Licence #411980. The Trustee pays a fee for the provision of this service, however this fee is not conditional on you using this service or acting on the information or advice provided through this service.