Government co-contribution

If you are a low or middle income earner and make personal (after tax) contributions into your super fund, you could be eligible to receive a ‘bonus’ contribution up to $500 from the Australian Government.

The amount you may receive depends on your income, your account balance in all your super funds (only applicable from 1 July 2017) and how much you contribute across all your super accounts. You cannot contribute in excess of your non-concessional contributions cap if you wish to receive the co-contribution. 

Eligibility

To be eligible to receive the Government Co-contribution you must meet ALL the following criteria. You:

  • Make eligible personal super contributions to your super account during the financial year.
  • Have a total income of less than the higher income threshold (see the table below for the thresholds). In this instance, your total income is reduced by your allowable business deductions.
  • Have 10% or more of your total income coming from employment-related activities, carrying on a business, or a combination of both In this instance, your total income is NOT reduced by your allowable business deductions.
  • Were less than 71 years old at the end of the financial year.
  • Lodge your tax return for the relevant financial year.
  • Did not hold a temporary visa at any time during the financial year (unless you are a New Zealand citizen or it was a prescribed visa).
  • Have a total superannuation balance less than the General Balance Transfer Cap at 30 June the previous financial year ($1.6 million for 2017/2018 financial year; n/a for 2016/17).
  • Have not contributed more than your non-concessional contributions cap for the financial year. For 2017/18 the contribution cap is $100,000 for 65 years or over provided you have met the work test; or $300,000 over 3 years for anyone aged under 65. 

More detail on eligibility is available from the ATO website.

How much can you receive?

The 2017/18 financial year government co-contribution amounts are as follows:

If you earn...

By contributing...

The maximum you could receive is...

$36,813 or less

$1,000

$500

$39,813

$800

$400

$42,813

$600

$300

$45,813

$400

$200

$48,813

$200

$100

$51,813

$0

$0

Source:  Super Contribution Calculator provided by ATO at www.ato.gov.au 

How to apply

You don’t need to apply for the co-contribution. All you need to do is:

  • Make personal super contributions (after tax) to a super fund;
  • Don’t claim a tax deduction for the that you wish to claim a tax deduction for; and
  • Lodge an income tax return in the relevant year

Once we have reported your personal contributions to the ATO, and you have lodged your income tax return, the ATO will then calculate if you are eligible. If you are, the ATO will automatically calculate the co-contribution amount and deposit it into your super account.

The ATO makes most payments between November and January each year as most contributions are reported by super funds by then and most personal tax returns have been lodged.

If you don’t supply your TFN we cannot accept your personal contributions (unless you provide your TFN to use within 30 days of the Trustee receiving the monies). Therefore, you will miss out on a government co-contribution if we return your contribution to you.

How to make a personal contribution

There are three ways you can make a personal contribution:

  1. Making a payment via BPAY®. Our biller code is 18622. You can find out your reference number by logging into the secure member area or by giving us a call on (08) 9480 3500.
  2. By cheque, in person or by post.
  3. By making arrangements with your employer to make an after tax payment. 
Find out more

Watch our educational module ‘Superannuation Contributions’ to learn more or use the ATOs Super Co-contribution calculator to see how much you may be able to get.

 

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