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Government Co-Contribution

Government Co-Contribution can also boost your partners and adult children’s Supers. Depending on their income, if they put $1000 a year, $83.5 a month or $38.5 a fortnight of post-tax salary/earnings (even from investments) into their Super then the Government will match it 50%. This happens automatically so there is no work or reporting for you to do.

  • Using the calculator, see what $1500 a year or $125 a month at 8.3% growth until they turn 60-67 will add to their Super/your combined retirement plan. Or the results if you added $3000, they added $1000 and the Government added $500 annually

Remember, that’s before employer contributions or other deposits

  • There is no guarantee this initiative will continue indefinitely, and contribution matches may increase or decrease over time.

 I will update this page as needed, keep checking in for changes!

Trust and Money

I hope your partners circumstances and qualifications are easily transferable, they have arranged or can find well paid work, and they can set up their own future financial success. (Transferring qualification costs are tax deductable should it lead to employment)

If both partners intend to work and be in higher tax brackets, how to split your shared funds, assets or investments is best discussed with a tax agent looking several years ahead. More kids on the horizon? Planning to post around Australia often meaning your partner will be stopping work periodically? Get professional advice on how to get the names right on the accounts. whether they are to be individual or shared before your 1st tax claim.

Should the sponsored persons partner not be intending to work, work part time and stay in the tax free or 15% tax bracket then larger asset separation may be more appropriate. (subject to professional advice)

Example of SGT Jones partner not working or earning a much lower wage than them:

  • SGT Jones and partner sold their family home prior to moving to Australia
  • SGT Jones will get a $125000 pension lump sum, keeping $80000 post car and white goods purchase
  • SGT Jones and his dependants will reside in a DHA home on initial posting to Australia. They want to take the time to figure out if they like that location or wish to post out in 2-3 years and learn different state stamp duty, incentives, HPAS and DHOAS rules prior to purchasing a property again
  • SGT Jones and his partner will have $200,000 post move and plan to invest it until they need it for a home purchase

Facts:

  • If SGT Jones and his partner are jointly named on an investment account, SGT Jones will be responsible for 50% of the tax liability on any interest earned, it will fall into the 30 or 37% brackets
  • If SGT Jones’ partner is the only name on the account, they will be responsible for 100% of the tax liability on interest earned. SGT Jones will also not be liable for their partners medicare-levy. (Losing 2% of interest earned on partners total income is less than 2% of SGT Jones combined income)
  • 100% of the interest earned will be in a tax free or low tax bracket meaning their investment compounds better until needed