Co-contributions
The Super Co-contribution Scheme is a program where the Australian Government will potentially match your personal after-tax contributions to super (limits apply, see below). If you make a personal (after tax) super contribution, earn less than $60,342* a year and meet other eligibility criteria, the Government will give your super account a helping hand with a co-contribution.
The Co-contribution is currently $1.50 for every dollar you put into your super, up to a maximum of $1,500 a year. Anyone with a total assessable income of less than $30,342* is eligible for the maximum amount. The size of the co-contribution reduces on a sliding scale as your income increases.
Expecting a co-contribution?
The Australian Taxation Office (ATO) will calculate the size of your Co-contribution after you have lodged your tax return and we have sent them the details of your personal contribution. We are required to do this by 31 October each year. They will then notify you once the co-contribution payment has been made on your behalf.
Are you eligible for the co-contribution in 2008/09?
From 1 July 2008, you will be eligible for the co-contribution in a year of income if:
- you make one or more personal (after-tax) superannuation contributions by 30 June each year into a complying superannuation fund
- your total income is less than $60,342* (this is indexed annually to reflect changing average wages)
- 10% or more of your total income is from eligible employment, running a business or a combination of both
- you are less than 71 years old at the end of the year of income
- you do not hold an eligible temporary resident visa at any time during the year
- You have provided us with your Tax File Number (TFN).
Please note: Your total income may be different to your assessable income.
When your total income is more than $30,342 but less than $60,342 in a year of income, your co-contribution will be adjusted based on your total income and how much you personally contribute.
For example, if you are eligible and your total income is $42,000 and you make personal superannuation contributions of $1,000 during the relevant year, you will be entitled to a co-contribution of $849.
Superannuation Co-contribution Scheme sliding scale
| Your income |
Your contribution |
|||
|---|---|---|---|---|
| $1000 | $800 | $500 | $200 | |
|
Your super co-contribution will be: |
||||
| $30,342 or less | $1,500 | $1,200 | $750 | $300 |
| $36,342 | $1,200 | $1,200 | $750 | $300 |
| $40,342 | $1,000 | $1,000 | $750 | $300 |
| $46,342 | $700 | $700 | $700 | $300 |
| $50,342 | $500 | $500 | $500 | $300 |
| $60,342 or more | $0 | $0 | $0 | $0 |
Want to learn more?
The Australian Taxation Office maintains an extensive website that covers all aspects of the Government Co-contribution Scheme. You can access it at www.ato.gov.au/content/42616.htm
* The minimum and maximum of assessable income thresholds are indexed annually and will change from year to year.
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