Super money for nothing

With the end of the financial year approaching some people will turn their minds to last minute tax planning, including topping up super payments. If you earn less than $31,920 in the current financial year, you can contribute up to $1,000 out of your bank account (not salary sacrificed) and the federal government will give (yep, give) you $1,000. You can earn up to $61,920 and still get a partial payment from Julia Gillard (yeah, the red head’s the new boss. I’m still getting over that too!)

Now for the catch. Your super fund needs to receive the payment before close of business, June 30. If they get it after this time it will count towards next financial year. So unless you can give a cheque to the trustee of your super fund in person sometime over the next 2 days, you will need to rely on 2 things. The first is that you will be eligible for the co-contribution next year. And the second is that there will be no changes to legislation over the next year that effects this area of super.

Happy new financial year!

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