Do you earn under $61920 Let the Government top up your super

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Do you earn under $61920 Let the Government top up your super Powered By Docstoc
					    Educational Series

    Do you earn under $61,920?
    Let the Government
    top up your super
    For each $1 you add as a personal after-tax contribution1, the Government will co-contribute
    $1 up to a maximum of $1,000 provided you meet the eligibility conditions.

Am I eligible?                                                                                       Your Super
                                                                                                     contribution:                    $1,000            $800           $500            $200
From 1 July 2007, both employed and self-employed people may
                                                                                                     If you earn  2
                                                                                                                                 The Government will contribute
be eligible for a super co-contribution. If you can answer YES to
all of these questions, in relation to a financial year, then you will                               $31,920 or less                     $1,000           $800           $500          $200

be entitled to a super co-contribution from the Government.                                          $35,000                               $897           $800           $500          $200
                                                                                                     $40,000                               $731           $731           $500          $200
  Have you made, or are you prepared to make,
                                                                                                     $45,000                               $564           $564           $500          $200
  personal contributions to your super for which you             n Yes          n No
  will not claim a tax deduction?1                                                                   $50,000                               $398           $398           $398          $200
  Will you earn less than $61,9202 in the 2009/10                                                    $55,000                               $231           $231           $231          $200
  financial year before tax (individual income,                  n Yes          n No                 $60,000                                $65             $65            $65          $65
  not household)?
                                                                                                     $61,920 or more                          $0             $0             $0           $0
  Do you earn more than 10% of your total income
  from being employed3 or from carrying on a                     n Yes          n No              For example, an eligible person who earns $25,000 is entitled to
                                                                                                  maximum co-contribution of $1,000. If that person contributes
  Are you under 71 years of age at the end of the
  2009/10 financial year?                                        n Yes          n No              $500 to super, their co-contribution will be $500; if they
  Have you or will you lodge an income tax return?                                                contribute more then their co-contribution would also increase,
                                                                 n Yes          n No
                                                                                                  up to the $1,000 maximum. An eligible person who earns
  Are you a permanent resident, or citizen
  of Australia?4                                                 n Yes          n No              $40,000 will receive a maximum co-contribution of $731 if they
                                                                                                  contribute $1,000 to super.

How much would I receive?
This depends on whether you meet the eligibility conditions,
the amount of income you earn and how much you add to
your super5. The following table shows what the Government’s
co-contribution will be based on your own contributions of
$1,000, $800, $500 or $200.

1 Contributions made by your spouse and employer do not count.
2 Assessable income and reportable fringe benefits and reportable employer super contributions less business deductions (except for super contributions or work-related expenses) for the
  2009/10 financial year. The lower threshold is indexed annually to AWOTE. The upper threshold is $30,000 higher than the lower threshold.
3 Eligible employment includes any arrangement where an employer is required to treat a person as an employee for the superannuation guarantee rules. Excludes fully retired people.
4 You are not eligible if you hold a temporary resident visa, for more information visit
5 There is a cap on the amount of after tax contributions you can make without paying higher rates of tax. In 2009/10 the non-concessional cap is $150,000 per year, or $450,000 over three
  years if you are under age 65 in the financial year.
                    Why should I worry about it?                                                                                    What do I need to do?
                    A little more in your super now could mean a lot more in the future.                                            To take advantage of the Government’s co-contribution scheme, you
                    The example in the chart below shows how much difference                                                        can top up your super any time via Direct Credit or Bpay® through
                    the co-contribution can make to your super balance in 20 years’                                                 internet or phone banking, or fill out the deposit slip overleaf.
                    time. The orange shaded area in the chart shows how much                                                                  Log on to your bank’s website and click on the option
                    extra you would have in your super if you make after tax personal                                                         to transfer funds. Then enter your:
                    contributions and are entitled to Government co-contributions.
                                                                                                                                              BSB                     062-778
                      The benefits of co-contributions                                                                                        Account number This is the last 9 digits of your
                                                                  I Compulsory super plus personal and Government co-contribution                            Colonial First State account number
                                                        200,000   I Compulsory super only
                                                                                                                                                                      eg if your account number is 0100
                        Estimated final super balance

                                                                                                    170,910                                                           1234 5678, the bank account for
                                                                                                                     148,764                                          direct credit would be: 012345678.
                                                                                                    125,293                                                           (Your account number can be
                                                                                                                                                                      found in the top right hand corner
                                                                                                                                                                      on any of your statements)
                                                                                                                                              Account name            This is your first name and surname
                                                             0                                                                                Reference               Please enter MV in the first two
                                                                   25,000          35,000          45,000            55,000
                                                                                        Annual income                                                                 spaces (for your member voluntary
                    This chart is for illustrative purposes only and does not represent actual returns.
                                                                                                                                                                      superannuation account contribution)
                     A change in one or more of the variables and assumptions will produce different results. This                            Please note: If MV is not entered correctly, your
                    is general information only and does not take into account your individual objectives, financial
                    situation or needs. The following assumptions have been allowed for: Starting account balance
                                                                                                                                              contribution will be entered as a superannuation guarantee
                    is $10,000; employer contributions are 9% of salary, paid monthly to the super fund for 20                                contribution which does not qualify for a co-contribution.
                    years. Fund earnings are assumed to be 6.5% per annum, after taxation of 15% and after fees.
                    Results are shown for different levels of assessable income, with no reportable fringe benefits,                          Log on to your bank’s website or call your bank’s phone
                    increasing by 4.0% each year. All results are in today’s dollars, allowing for inflation at a rate of
                    3.0% per annum Maximum co-contributions are: $1,000 from 1 July 2009 to 30 June 2012,                                     banking and select the option to transfer funds. Then
                    $1,250 from 1 July 2012 to 30 June 2014, then $1,500 from 1 July 2014 onwards.                                            provide the relevant biller code and your customer
                    For example, Terry is 45 years and earns $25,000 pa and                                                                   reference number.
                    contributes $1,000 of his own money to his super at the end of
                    each year over the next 20 years. Based on Terry’s income, the                                                   Biller codes: Superannuation
                    Government will contribute up to $1,000 a year to Terry’s super                                                                                             Personal contribution type
                    account – tax-free. In this situation, and given the assumptions,                                                Rollover & Superannuation Fund                            78857
                    shown above in the charts, Terry could retire almost $60,000                                                     FirstChoice Personal Super                              414334
                    over and above what he would have if he didn’t take advantage
                                                                                                                                     FirstChoice Wholesale Personal Super                    485441
                    of the co-contribution scheme. Even if Terry earned $45,000 he
                                                                                                                                     FirstChoice Employer Super                              414375
                    could still benefit by over $45,000 in retirement.
                                                                                                                                    Your customer reference number is the digit 1 plus your account
                    When would the Government                                                                                       number (your account number can be found in the top right
                                                                                                                                    hand corner of any of your statements).
                    top up my super?
                    If you are eligible and have lodged your annual tax return, the
                    Australian Taxation Office (ATO) willl:
                    W Work out your super co-contribution
                    W Deposit it into your super account, and
                    W Send you a letter with details of your super co-contribution.
                    Payments are generally made in November/December each year.

                                         To find out more
                                         Talk to your financial adviser, call us on 13 13 36 or visit out website at

                    This flyer provides general information and is not financial advice. It does not take into account your individual objectives, financial situation or needs. You should read the relevant Product

                    Disclosure Statement (PDSs) and assess whether the information is appropriate and consider talking to your financial adviser or taxation specialist before making an investment decision.
                    The flyer assumes that the current taxation and superannuation laws as at 1 July 2009 will continue to apply without any change. Colonial First State Investments Limited ABN 98 002 348
                    352, AFS Licence 232468 (Colonial First State) is the issuer of interests in FirstChoice Personal Super, FirstChoice Wholesale Personal Super, FirstChoice Pension, FirstChoice Wholesale Pension
                    and FirstChoice Employer Super from the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557 and interests in the Rollover & Superannuation Fund and the Personal
                    Pension Plan from the Colonial First State Rollover & Superannuation Fund ABN 88 854 638 840 and interests in the Colonial First State Pooled Superannuation Trust ABN 51 982 884 624.
                    ® Registered to Bpay Pty Ltd ABN 69 079 137 518.

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