By Jason Fittler
You are all well aware that under the Governments stimulus package if your income is below $80,000 pa you will receive a one off payment of $900 from the government. When speaking to clients in regards to this one off payment it would appear that most intend to use these funds to pay down debt.
Will this give you the best return?
$900 off the average loan will save you around $63 over a year, a return of 7%.
How would you like a return of 150%? Of course it will require a bit more commitment on your behalf.
If your income is less than $30,342 the government will give you $1.50 for every dollar you contribute after tax to your super fund. As such if you were to contribute the $900, the government will contribute another $1350 into your super fund. This would make it a total contribution of $2250.
Free money from the government, what more could you ask for?
If you earn more than $30,342 but less than $60,342 you are still entitled to some contribution from the government as such it will still yield a better return than paying down some debt.
So now you are educated, but are you wise?
The educated person will read the above information and say “Yes that is a good idea.” The wise will act on it and make the money.
I will leave it up to you.
PS. Need help? Call us at ABN AMRO Morgans Townsville, 07 4771 4577 we are always ready to listen, explain and help.