New Super Rules/Co-contribution
- Thread starter carmo
- Start date
- Joined
- 5 August 2004
- Posts
- 1,996
- Reactions
- 0
Re: New Super Rules/ Co contribution
Don't thinks its possible as the person must be actively in the workforce/ earning a wage. At least 10% of their wage must come from a work related income to claim the super co-contibution.
Don't thinks its possible as the person must be actively in the workforce/ earning a wage. At least 10% of their wage must come from a work related income to claim the super co-contibution.
- Joined
- 14 November 2005
- Posts
- 1,319
- Reactions
- 12
Re: New Super Rules/Co contribution
As from the 1st July 2007 the co-contribution will also be available to self-employed persons. (Only in very unusual circumstances would this include children).
carmo said:
As from the 1st July 2007 the co-contribution will also be available to self-employed persons. (Only in very unusual circumstances would this include children).
Re: New Super Rules/Co contribution
My understanding is that provided your children have TFN's and earn a taxable income, they would qualify for the co-contribution scheme.
For example, I have two school-age children who have part-time jobs and probably earn about $1,000 to $2,000 annually. The co-contribution scheme is certainly working for them i.e. for each child we put in $1,000 and the ATO puts in $1,500 each year! Not a bad return and arguably all the better if you can include them under your SMSF. Same applies for a Uni student who could, of course, be earning a lot more than $2,000 a year part-time.
My understanding is that provided your children have TFN's and earn a taxable income, they would qualify for the co-contribution scheme.
For example, I have two school-age children who have part-time jobs and probably earn about $1,000 to $2,000 annually. The co-contribution scheme is certainly working for them i.e. for each child we put in $1,000 and the ATO puts in $1,500 each year! Not a bad return and arguably all the better if you can include them under your SMSF. Same applies for a Uni student who could, of course, be earning a lot more than $2,000 a year part-time.
- Joined
- 14 November 2005
- Posts
- 1,319
- Reactions
- 12
Re: New Super Rules/Co contribution
That is not exactly correct. The children need more than a TFN and a taxable income. In your example - yes they would qualify - because they are employees and come under the same rules as an adult. If your child just had a TFN and earned $150 interest they would not be eligible.
JMcDog said:
That is not exactly correct. The children need more than a TFN and a taxable income. In your example - yes they would qualify - because they are employees and come under the same rules as an adult. If your child just had a TFN and earned $150 interest they would not be eligible.
Re: New Super Rules/Co contribution
That is my understanding as well. For our son, rather than make him a member of our SMSF (the amount's too small to justify any additional costs of keeping another member account), his super account is with with AGEST, a low-cost industrial fund. You do not have to put the $1,000 in as a lump sum: it can be done as a periodical payment of say $20 per week, an amount which is hardly missed.
Duckman#72 said:
That is my understanding as well. For our son, rather than make him a member of our SMSF (the amount's too small to justify any additional costs of keeping another member account), his super account is with with AGEST, a low-cost industrial fund. You do not have to put the $1,000 in as a lump sum: it can be done as a periodical payment of say $20 per week, an amount which is hardly missed.
Re: New Super Rules/Co contribution
for a person to receive co-contribution they need to be an eligible employee for SGC contributions. An employer does not have to pay SGC unless an employee earns $450 per month. So to qualify for for Co-Con an individual would need to be employer sponsored and earn as a minimum 5,400
for a person to receive co-contribution they need to be an eligible employee for SGC contributions. An employer does not have to pay SGC unless an employee earns $450 per month. So to qualify for for Co-Con an individual would need to be employer sponsored and earn as a minimum 5,400
- Joined
- 14 November 2005
- Posts
- 1,319
- Reactions
- 12
Re: New Super Rules/Co contribution
Not quite - an employee could work for just one month and receive $600 - get super paid by employer and therefore be eligible for the co-contribution. There is no minimum taxable income amount (eg $5,400)
Bomba said:
Not quite - an employee could work for just one month and receive $600 - get super paid by employer and therefore be eligible for the co-contribution. There is no minimum taxable income amount (eg $5,400)
- Joined
- 3 October 2008
- Posts
- 69
- Reactions
- 0
Re: New Super Rules/Co contribution
Your contribution will be taxed at 15% when it enters the fund.
You may or may not be eligible for a gov't co-cont depending on your level of income.
Remember once you commit your money to super you generally cannot access it for your benefit till your >55 or have . You should check out the ATO website for relevant rates/thresholds and further reading HERE
Your contribution will be taxed at 15% when it enters the fund.
You may or may not be eligible for a gov't co-cont depending on your level of income.
Remember once you commit your money to super you generally cannot access it for your benefit till your >55 or have . You should check out the ATO website for relevant rates/thresholds and further reading HERE
The contribution will only be taxed at 15% if you use it as a tax deduction from your ordinary income. If you put it in the fund and do not use it as a tax deduction you will get no tax deducted from it and this will qualify you for the co-contribution depending on your income level.
You need to notify your fund if you want to use it as a tax deduction.
You need to notify your fund if you want to use it as a tax deduction.
Re: New Super Rules/Co contribution
Seek professional advice or be sure that you have read enough from official sources to be sure of what you are doing. Forum advice may be well intentioned but wrong.
Unless less than 10% of your income comes from employment and you make an election for your contribution to be deductable - then you contribution will not be subject to 15% income tax when it enters the fund. It will be treated as an 'undeducted contribution' as will any relating co-contribution that you receive from the government.
Future earnings will be taxed at 15%
It is only undeducted contributions that attract the co-contribution.
The preferential tax treatment and forced compounding of earnings are super's simple secrets. Look to put your money into a fund with low expenses - It's important over the long run.
Don't forget you are reading this on a forum, so you had better check it's right before taking any action
Seek professional advice or be sure that you have read enough from official sources to be sure of what you are doing. Forum advice may be well intentioned but wrong.
Unless less than 10% of your income comes from employment and you make an election for your contribution to be deductable - then you contribution will not be subject to 15% income tax when it enters the fund. It will be treated as an 'undeducted contribution' as will any relating co-contribution that you receive from the government.
Future earnings will be taxed at 15%
It is only undeducted contributions that attract the co-contribution.
The preferential tax treatment and forced compounding of earnings are super's simple secrets. Look to put your money into a fund with low expenses - It's important over the long run.
Don't forget you are reading this on a forum, so you had better check it's right before taking any action
