Want to more than triple the $900 stimulus package bonus?
Firstly, check if you are eligible for the Government Co-contribution. Broadly, the maximum Co-contribution is available to anyone under the age of 71 who has an income less than $30,342. It then slowly reduces by 5 cents for each dollar earned in excess of $30,342 until it is phases out completely when income reaches $60,342.
If you are eligible for the full co-contribution you could more than double your stimulus bonus. You could get 1 and a half times the bonus, or a 150% return on your investment.
Assuming you are eligible all you need to do is contribute your $900 stimulus bonus into your superannuation fund. Once you have submitted your tax return for the financial year the Government will match your $900 contribution with a $1,350 co-contribution into your superannuation fund.
This means that you could turn your $900 bonus into $2,250. That has got to be the closest thing to “money for nothing”.
If you earn less than $30,342 you could even contribute an extra $100 (a total of $1,000) to get the maximum co-contribution of $1,500.
Do you want to make the $900 go even further? If you earn less than $13,800, have your partner make a spouse contribution (that is, a contribution on your behalf) and they will receive a tax rebate of $540. If you meet this criteria, your $900 bonus has now turned into $2,790, tripling your money!
To learn more about the co-contribution check out this short video.
Next financial year the co-contribution will drop back to a maximum of $1,000 but this is still effectively a 100% return on your investment with absolutely no risk!
Gavin Martin is a Financial Adviser, Managing Director of Cornerstone Wealth and founder of www.mastermymoney.com.au
Disclaimer
This article does not take into account the personal objectives, financial situation or needs of any person. You should consider the appropriateness of the information having regard to your own objectives, financial situation and needs and obtain professional financial advice prior to making any decision.
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Triple your $900 Stimulus Bonus
Turn your $900 Stimulus Bonus into $2,790
By: Gavin Martin
Christian Today Australia Columnist
Christian Today Australia Columnist
Wednesday, 3 June 2009, 9:40 (EST)
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