A super bargain

You now have only three days to grab a government incentive that would boost your superannuation.

The offer is open to Australians, under 71, whose income is below $61,920.

It comes in the form of a government co-contribution

And the Association of Superannuation Funds of Australia (ASFA) says it is one of the best ways for Australians to boost their superannuation balances each financial year.

“The co-contribution really is like free money and it’s one of the simplest ways those on lower incomes can top up their super balance,” said ASFA CEO Pauline Vamos.

So what do you have to do?

And who is eligible, precisely?

“Most working Australians won’t need to do anything other than make a personal after-tax contribution to their super account before 30 June and then lodge their tax return as they normally would to receive the contribution,” Ms Vamos says.

“The initiative helps eligible individuals boost their retirement savings by the Government matching personal contributions up to $1,000,” she adds

“For the 2011-12 financial year, after-tax super contributions will be matched at $1 for every $1 contributed up to a maximum co-contribution of $1,000 for those on incomes up to $31,920,” Ms Vamos says.

You are eligible for a co-contribution this financial year if:-

• You’re under 71 years of age on 30 June 2012.
• Your total income is below $61,920.
• You make a personal after-tax contribution by 30 June 2012 into your super fund or retirement savings account.
• At least 10 per cent of your income is from eligible employment, running a business or a combination of both.
• You do not hold a temporary resident visa at any time during the year.
• You lodge a tax return for the 2011-12 year.