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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, you can 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

  • Disclaimer: There is no guarantee this initiative will continue indefinitely, and contribution matches may increase or decrease over time. (Factual, informational, not a recomendation or financial advice)

Trust and Money

If you are coming from or arrived recently from overseas. 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 move around Australia often meaning one or more partners 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 Mr Jones partner not working or earning a much lower wage than them:

  • Mr Jones earns $120,000 annually in his new job in Australia
  • Mr Jones and partner sold their family home prior to moving to Australia
  • They will have $200,000 post car and white goods purchase
  • Mr Jones and his dependants will rent a home on initial posting to Australia. They want to take the time to figure out if they like that location or wish to move in 2-3 years and learn different state stamp duty rates and incentives prior to purchasing a property again
  • Mr Jones and his partner wish to invest the $200,000 until they need it for a home purchase

Facts:

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