Self-employed people are eligible to receive the Federal Government’s super co-contribution if they make their contribution this financial year. The government has expanded the number of taxpayers eligible to receive the co-contribution.
Previously only employees were eligible, but now people who are self-employed and contribute up to $1,000 of their after tax income to superannuation can also qualify.
However, there are criteria that you must meet. Your contribution needs to be made before 30 June 2008 and your total income must be less than $58,980. Ten percent or more of this total must be from eligible employment, running a business or a combination of both. You must also be younger than 71 on 30 June this year.
To receive the maximum contribution, your total income must be less than $28,980 and you must put aside $1000. The Government’s contribution of $1,500 reduces by five cents for every $1 over $28,980 you earn and cuts out at $58,980.