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government co contribution

Discussion in 'Superannuation, SMSF & Personal Insurance' started by voigtstr, 9th May, 2007.

  1. voigtstr

    voigtstr Well-Known Member

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    A mate mentioned that the government has upped the co-contribution for personal contributions in the budget last night.

    Does anyone have details on what percentage the government contributes and if there is a cap?
     
  2. perky

    perky Well-Known Member

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    FRom what I know - you put $1000 , and they put $3000 - thats the max. That could add up nicely over 25 years....
     
  3. crc_error

    crc_error The Rule of 72

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    Go Costello!

    More money into the aussie market! up up up!
     
  4. DaveA

    DaveA Well-Known Member

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    its just doubled the normal contribution payable etc

    25k earner putting in 1k gets an additional 3k, instead of 1500
    40k earner putting in 1k gets an additional 1800, instead of 900

    its only for LAST financial year though, so a one of special basically. It said payments should be made by June 30. So its a vote buying policy..

    They also increase contingents by $800m to fund the governments spending spree for the election campain as well...
     
    Last edited by a moderator: 9th May, 2007
  5. crc_error

    crc_error The Rule of 72

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    Whats this bullcrap labor statement? Vote buying policy?

    Any money the government spends can be classed as 'vote buying policy' or 'bribing sectors of the community policy'

    Funny how Labor really has nothing to hang crap on this budget once again, so they are stuck making bull crap comments like this..

    We live in the best country in the world, and people like you still don't appreciate it. Labor will have you believe that it all just happened by chance.. way to go mate!
     
  6. DaveA

    DaveA Well-Known Member

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    Well atleast im glad your in agreeance to this. Just because it looks like a duck, doesnt mean it actually is a duck.

    That is my own personal opinion... It has not been made up by any one party. ( i havent even read labours comments to the budget).

    Some may say it is a coincidence that payments last year were made in January/Feburary while they will be now paid in November.

    People who call this country the best are blinded by a domestic vision. How can comments be made when every country has not been compared, nor the individual has not personally spent time in ever country they are comparing it to.

    This forum is for attacks or political bashing, its about investing.

    My opinion, regardless of the political party i support is take what is on offer, contribute to the super and recieve some additional money. Hey its a 300% return, ud be made not to take it.
     
  7. philgu

    philgu Member

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    That is what is in the Budget

    "One‑off doubling of superannuation co‑contribution for eligible contributions made in 2005‑06 to improve superannuation savings for low income earners by $1.1 billion"

    My understanding is if you haven't made the contribution in 05-06. No doubling of co-contribution. BTW, it is once off deal too.
     
  8. DaveA

    DaveA Well-Known Member

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    Hmmm, yes sorry, i seem to have got that wrong... would of been nice if it was for this year not last year though.

    im going to go back and update my post so its correct for future
     
  9. yo yo ma

    yo yo ma Member

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    I just spoke to the ATO... In previous years it was only people on salaries & wages who could make the co-contribution. This has now changed to allowing any low income earner to do it (self-employed, ABN holders). Good for my wife:)
    Steve
     
  10. Meggsy

    Meggsy Well-Known Member

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    Thresholds are as follows:

    $1.50 for every $1, up to a maximum co-contribution of $1,500 a year.

    Your maximum amount is $1,500. However, you must reduce this by 5c for every dollar you earn over $28,980 up to $58,980.
     
  11. MattR

    MattR Well-Known Member

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    Yeah, I along with about 10,000 other tax agents screamed and shouted at the government "why are you punishing the self employed". About bl00dy time.
     
  12. yo yo ma

    yo yo ma Member

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    Well thanks Matt & the other tax agents:). I put the $1k in for my wife but the $1.5k never showed up... When I enquired, it was beacuse she has an ABN & therefore did not qualify. Glad this has been fixed now.
    Steve
     
  13. DaveA

    DaveA Well-Known Member

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    So if you hold an ABN you simply do not qualify for the co contribution? I set an abn up 4 years ago and haven’t used it since 04, I contributed a $1000 in June and are going to be pretty pissed off if I don’t get the contribution as that was my only reason for putting it in

    I guess this may be a lesson to always ask your accountant before doing something...
     
  14. yo yo ma

    yo yo ma Member

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    Hi Dave
    You may be ok if you haven't used the ABN. I think the test is whether you class yourself as self-employed... If you aren't then you should receive the payment. From this financial year you will be ok either way. Maybe check with the tax office on 131020 from 8am- 6pm Monday- Friday.
    Steve
     
    Last edited by a moderator: 19th Aug, 2007
  15. Meggsy

    Meggsy Well-Known Member

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    I have an ABN which I've had for about 4 or 5 years now, haven't used it but I have got the co-contribution for 2 years running now... I'd say you'll be fine.