Generating Money From Your Superannuation

Have you ever stopped to think how you are going to prepare for retirement? How much are you earning? If your income is less than $46,920 annually, then you should know that you can actually take advantage of the superannuation co-contribution scheme offered by the Federal Government.

What Is It?

The superannuation co-contribution scheme generally means that on top of the employer putting a certain percentage of your income in the superfund, you also have an option a little extra. And the great news is the government will pay $.5o for every dollar that you contribute. This is up to a maximum of $ 500 every year.

However, in order to be eligible it is important that you make contribution from the after tax income of your superfund and make it before June 30th of every year.

How?

How do you get to do this? The choice is yours. Among the popular options is to take advantage of this particular scheme but coordinating with your employer to take $ 40 to $80 every month out of the after tax salary and deposit it into the superfund.

Another option is to add lump sum deposit to the super fund. Either way, these small contributions can make a significant difference to your wealth later in life.

What about self-employed individuals? You can also make a claim for personal superannuation contributions. This will of course differ depending from your personal circumstances.



1 Comment

  • I have not yet read anything on the web which anersws my question.We have two members, one in pension phase and one in accumulation phase, we are and have always been completely segregated in terms of assets, asset pools, bank accounts, investment strategies. The member in accumulation phase has some significant tax losses in previous years. The SMSF accountant has just informed the member in accumulation phase that all his tax losses have been rendered null and void by the exempt pension income of the pension member leaving him seriously out of pocket should he in the future make any gains thereby incurring a tax liability. Is the SMSF accountant correct? Does the accumulation member lose his abiltiy to create any wealth due to the tax exempt status of the pension member in a segregated SMSF?

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