Don't miss out on a co-contribution if you're eligible

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

As yet another financial year flies by, a little planning now can mean that you don't get caught short when 30 June 2013 rolls around. If your income is less than $46,920*, you may qualify for a co-contribution payment to your super if you make after-tax super contributions.

The co-contribution is as close to free money as you can get. The Salary sacrifice / Co-contributions calculator in the 'Planning tools' section of the Lutheran Super website lets you compare the benefits of making before-tax contributions (and the tax savings) and after-tax contributions and, if you qualify, the potential co-contribution payment.

Even making small regular after-tax contributions can count towards a co-contribution payment, and can be easier than trying to find a lump sum to contribute when the end of the financial year rolls around.

To understand more about co-contribution payments, read the article in the website's 'Article library' entitled, Co-contributions - Boring name, big benefits.

Best of all, if you qualify for a co-contribution, all you need to do is complete and submit your tax return for the year. There is no other paper work to complete. After the Australian Taxation Office has assessed your return, if you qualify, your co-contribution payment will automatically be paid into your Lutheran Super account.

* The upper income threshold for the 2011/12 financial year is $61,920. The Government announced changes that, if passed by parliament, will apply to all contributions made from 1 July 2012:

  • the maximum co-contribution payment will be $500
  • the matching rate to be reduced to 50%
  • the lower income threshold will remain $31,920, and
  • the higher income threshold will be reduced to $46,920.

However, as at the time of publication these announced changes have not yet become law.

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.