Government Co-Contribution
Government Co-Contribution
The Government’s Co-contribution is a great way to boost your retirement savings. If you’re eligible, the Co-contribution is an amount paid by the Government into your super account. The Government makes the Co-contribution if you have made a voluntary, after-tax contribution to your super account during the year.
To qualify for the Co-contribution, you must:
- earn less than $60,342* in a tax year;
- have made an extra, after-tax contribution to your super account during the tax year;
- earn at least 10% or more of your total income from carrying on a business, eligible employment or a combination of both;
- have provided your TFN to your super fund;
- lodge a tax return for the year in which you made your super contribution.
The Co-contribution does not apply if you are aged 71 years or more, or if you have held an eligible temporary resident visa at any time during the year.
How much does the Government contribute?
For every dollar you put into your super account, the Government will contribute up to $1.50, with a maximum co-contribution of $1,500.
The maximum co-contribution applies to people who earn $30,342 or less in a year and have made a contribution of at least $1,000 from their after-tax pay.
It reduces by 5 cents for every dollar you earn over $30,342, phasing out completely once your income reaches $60,342.
You don’t need to apply for the Co-contribution – simply lodge your annual tax return. The Australian Taxation Office (ATO) will calculate your co-contribution and pay it directly into your super account. It will take a few months to be processed after you lodge your tax return and the Fund advises the ATO of the amount of your personal contributions.
* Assessable income and reportable fringe benefits