This article was written by our friends at GigSuper – a superannuation fund designed specifically for people who are self-employed.
We’re about to tell you something that surprises nearly every tradie that we tell…
There’s a way to get the government to put up to an extra $500 into your super account every year.
To take advantage of this incentive, you need to :
- Make a personal contribution into super,
- Earn less than $53,564 per year, and
- Have not held a temporary visa in Australia this financial year
If you meet the criteria listed above, keep reading!
What we’re talking about is an incentive provided by the government called the Government Co-Contribution.
Here’s how it works
If you earn somewhere between $0 and $38,564 per year, then for every dollar that you personally contribute to super, the government will contribute another 50 cents – up to a maximum of $500.
In other words, if you contribute $1000 for the year – which is only $20 per week – the government will top up your contribution with an extra $500 into your super account at the end of the year.
If you’re in the next bracket and you’re earning between $38,565 and $53,564 you’re also eligible, but the difference is that as your income gets higher, the maximum amount of this benefit reduces.
So, for example, someone who is earning $46,000 per year that contributes $1,000 will get a $252 government co-contribution.
The other great thing about all this? There’s generally no paperwork required.
If you’re eligible, the Government Co-Contribution automatically gets credited to your super account once you’ve done your tax return – as long as you haven’t claimed those contributions as a tax deduction.
But like many things to do with getting tax incentives from the Australian Taxation Office (ATO), there are some additional eligibility criteria. We’ve covered the big ones here, but you should check the ATO website under Government Co-contribution to see a full list of the eligibility criteria.
If you’re a self-employed tradie, GigSuper makes it super easy to get your super sorted online today. In 3 simple steps, your retirement saving will be automated, which lets you get on with whatever you do best without feeling like your super balance is falling behind your employee mates. So if you’re looking for an easy way to take advantage of the Government Co-Contribution, come and check out GigSuper and you’ll be sorted in no time!
GigSuper is promoted and distributed by GigSuper Pty Ltd (ACN 620 862 053), a corporate Authorised Representative (number 1276569) of Grow Super AFSL Pty Ltd (ABN 63 135 540 135), the holder of Australian Financial Services Licence number 340958. Any financial product advice is general in nature and has not taken into account the objectives, financial situation or needs of any person, or purport to be comprehensive or constitute investment advice and should not be relied upon as such. Whilst GigSuper has been designed with people like tradies in mind, it may not be right for all tradies. Before making a decision to use GigSuper, you should read the PDS and Saver Account Terms and Conditions to ensure it meets your needs and if in doubt, talk to your tax accountant or professional advisor.
goodwork has partnered with GigSuper because we understand saving for retirement is a key challenge for many in our community and we believe GigSuper can help, but please bear in mind that if you decide to sign up with them we may also receive a flat fee for referring you.