DO you want to make a guaranteed 100 per cent on your money between now and June 30th?  Then rush off to your financial adviser and make a non-concessional contribution of $1,000 to superannuation.  

Provided you meet the eligibility guidelines, the Government will give you a tax-free bonus of $1,000, which will see your $1,000 miraculously turned into $2,000.

The maximum government co-contribution is $1 for every $1 of eligible personal super contributions made in a financial year and is subject to an income test.
 
The maximum co-contribution of $1,000 is reduced by 3.333 cents for every dollar that the taxpayer’s total income exceeds $31,920.

As income rises the co-contribution reduces by $33.33 for each $1,000 of additional income, until it cuts out at $61,920 a year.

For co-contribution purposes your income is your assessable income plus your reportable fringe benefits. To be eligible for the co-contribution, you must have received at least 10 percent of your income from what is called “eligible employment” – usually income from salary or wages. Eligible employment generally means anything resulting in your being treated as an employee.

Until 1 July 2007 self employed people were unable to claim a co-contribution.  The rules have been changed and now the self-employed may be able to claim a co-contribution if they meet the other eligibility criteria.  

Just be aware that the employer compulsory superannuation does not count for the co-contribution.  To be eligible you must make an additional contribution from after tax dollars.  This is not subject to the 15% entry tax.  

It is also possible to make a quick capital guaranteed 18% on your money.  Think about a spouse superannuation contribution.  Provided the spouse’s assessable income is less than $10,800, the contributor will be entitled to a tax rebate of 18% of the contribution with a maximum of $540.

The amount of rebate reduces progressively once the spouse earns over $10,800 and cuts out at $13,800.  It’s a simple way to turn $3,000 into $3,540.  

Noel Whittaker is a director of Whittaker Macnaught Pty Ltd. His advice is general in nature and readers should seek their own professional advice before making any financial decisions. His email is noel.whittaker@whittakermacnaught.com.au.