Have your cake and eat it too
Add to your super and you might get a top up from the Government
If you’re a low or middle-income earner and make personal (after tax) contributions into your super fund, you could be eligible to receive a ‘bonus’ co-contribution of up to $500 from the Australian Government.
The amount you may receive depends on your income, your account balance in all your super funds and how much you contribute across all of your super accounts.
You cannot contribute in excess of your non-concessional contribution limit if you wish to receive the co-contribution.
To be eligible to receive the Government co-contribution, you must meet ALL of the following criteria. You:
- make eligible personal (after-tax) 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 2018/2019 financial year)
- have not contributed more than your non-concessional contributions cap for the financial year. The current 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 government co-contribution amounts are as follows:
|Financial Year||Maximum entitlement||Lower income threshold||Higher income threshold|
|2018 - 2019||$500||$37,697||$52,697|
|2019 - 2020||$500||$38,564||$53,564|
|2020 - 2021||$500||$39,837||$54,837|
Depending on your income, the government will pay in up to 50 cents for every one dollar you contribute yourself from your after-tax income.
The ATO has a Super Co-Contributions Calculator you can use to check if you are entitled to a co-contribution and how much you are likely to receive. All you need is information about your income (including any reportable fringe benefit amounts) and personal super contributions. If you have business income, you will need to provide the amount of business-related deductions.
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 your super fund;
- Don’t claim a tax deduction for the contribution that you wish to claim the co-contribution for; and
- Lodge an income tax return in the relevant year
Once we’ve reported your personal contributions to the ATO, and you’ve lodged your income tax return, the ATO will then calculate if you’re 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.
Supplying your TFN to WA Super is important. If you don’t supply it, we cannot accept your personal contributions (unless you provide your TFN to us within 30 days of the Trustee becoming aware that we do not hold that info on file). Therefore, you will miss out on a government co-contribution if we have to return your contribution to you.
How to make a personal contribution
There are three ways you can make a personal contribution:
- 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 give us a call on 08 9480 3500.
- By cheque, in person or by post.
- By making arrangements with your employer to make an after-tax payment.
Find out more
- Watch our Superannuation Contributions educational module to learn more.
- Use ASICs Super Co-contribution calculator to find out how much you may be able to get.
Last updated: 10 July 2020