Government Co-contributions

This could be one of your last chances to take advantage of the dollar for dollar (up to $1,000) co-contributions, through the Government Co-contribution scheme, before these amounts possibly reduce in July this year.

However, the good news is it’s not too late to boost your super using the scheme. In fact, you have until 30 June 2012 to do so.

Since 2009, over 10,000 LUCRF Super members have taken advantage of the Government’s co-contribution scheme and have shared in more than $11 million in bonus super payments.

You can easily be part of this group receiving bonus super payments from the Government if you are eligible for the co-contribution scheme.

If you earn less than $61,920* p.a. and make a personal (after-tax) contribution into your super account, you may be eligible to receive a Government co-contribution bonus payment of up to $1,000 per year paid directly into your super account.

What is the co-contribution?
The Super co-contribution scheme is a program where the Australian Government will potentially match your personal after-tax contributions to super (limits apply). If you make a personal (after-tax) super contribution, earn less than $61,920* in 2011/12 and meet other eligibility criteria, the Government will give your super account a helping hand with a co-contribution. The size of the co-contribution reduces on a sliding scale as your income increases.

Are you eligible for a co-contribution?
To be eligible to receive the Government co-contribution to super, you must:

•    Be an Australian permanent resident under 71 years of age
•    Earn 10% or more of your total income from eligible employment, running a business or a combination of both
•    Earn a total gross income of less than $61,920 p.a.*
•    Have provided your TFN to your super fund
•    Make a personal (after-tax) contribution into your super account by 30 June     2012, and
•    Lodge an income tax return.

Please note: Your total income may be different to your assessable income, as it includes any salary sacrifice arrangements you may have.
How much 'money for nothing' can you receive?

When your total income is more than $31,920 but less than $61,920 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 $43,920 and you make personal superannuation contributions of $1,000 during the relevant year, you will be entitled to a co-contribution of $600.

The table below shows how much you could receive from the Government co-contribution scheme for the 2011/12 financial year.

Want to learn more?

You can find out more in our Money for Nothing brochure (see Related content).

The Australian Taxation Office also 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 income thresholds for 2011/12. Please note that these can change from year to year.

Please refer to disclaimer below.