Superannuation Support for Low-Income Earners
Many people struggle to pay their bills regularly, let alone save for their retirement. Though they need all of their income, it is just as important to start saving for their future. Lucky for them, the Australian Government provides support for people on low incomes to save for their retirement.
3 ways to get help from the Government
1. Concessional Tax Refunds
If you earn less than $37,000 a year, you could receive a refund of the tax paid on your concessional super contributions, up to a maximum of five hundred dollars per year, paid directly into your super account. Concessional contributions include your employer’s superannuation guarantee (SG), salary sacrifice and personal deductible contributions.
2. Government Contributions
If you earn even less than $36,813 for the 2017/2018 year, the Government will pay fifty cents for every dollar that you put towards your super. They will pay up to five hundred dollars, which will really help you prepare for the future. The co-contribution amount reduces as your income approaches $51,813.
3. Self-Employed Super Support
Don’t worry if you are self-employed. Self-employed business owners are also eligible for super support, as long as they are considered low-income earners.
So, what does this mean for low-income earners? Not only are they given an incentive to save for their super, the Government will help boost their retirement savings. Click here for more information about how superannuation works for employees in Australia.
Contact us to find out more about these Government incentives and how you can boost your super savings.