Want more money for your super?
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Superannuation

Want more money for your super?

You could get a super boost from the Government of up to $500 if you earn less than $54,837 p.a. and also make a personal contribution into your super account.

How do government co-contributions work?

  1. You make a contribution to your super from your after-tax income.
  2. At the end of the financial year, the government reviews how much you’ve earned. If you’ve earned less than $54,837 you could qualify for the co-contribution.1
  3. If you do qualify, the co-contribution is paid directly into your LUCRF Super account. You will receive a co-contribution notification letter from the Australian Taxation Office (ATO). The amount will also appear on your following LUCRF Super member statement.

How much will you get?

If you’re a low-income earner, the government will add up to 50 cents for every dollar (after-tax) you contribute, up to a maximum of $500.

The co-contribution is reduced as your income increases. It cuts out completely once you earn over $54,837 p.a.1

The table below provides examples of how much the government will co-contribute in line with how much you earn.

YOUR TOTAL INCOME1 maximum co-contribution availableyour after-tax contribution 
$39,837  or less
$500
$1,000
$45,837
$300
$600
$51,837
$100
$200
$54,837  or more
$0$0

The rules

For the 2020/21 financial year, you're eligible for the government co-contribution if:

  1. your total income is under $54,837 and you make at least one after-tax contribution to your super account during the year 1
  2. 10% or more of your total annual income is from eligible employment, running a business or a combination of both
  3. you’re an Australian citizen, a permanent Australian resident or a New Zealand citizen working in Australia
  4. you lodge an income tax return (if you’re over 67 you must satisfy the work test) and you’ve given us your TFN, and
  5. you’re under 71 years of age at the end of the financial year.

Why do you need my tax file number (TFN)?

We need your TFN so that we can accept your personal contributions.
If you don’t supply your TFN to us:

  • you may miss out on the government co-contribution because we won’t be able to accept your personal contribution

  • a higher tax rate may apply for certain types of contributions, and

  • additional tax may be deducted when you start drawing down your super.

Do I need to apply for the co-contribution payment?

No, if you’re eligible, you just have to make a personal contribution to your super and lodge an income tax return for the financial year of payment.

How will I know when the co-contribution has been received?

The ATO will send you notification of the co-contribution payment, which will also appear on your LUCRF Super member statement for the financial year that it was received by us.

Are personal contributions and co-contributions subject to superannuation tax?

No, they're tax-free (provided they're within the contributions cap). They're treated as non-concessional (after-tax) contributions and aren't taxed when either paid into your super fund or paid to you as a benefit. However, interest earned on these contributions is taxable.

What's the personal contribution limit?

This is a limit set by the government on the amount of after-tax, personal contributions you can make before you pay extra tax. This is known as the non-concessional contributions cap.

The annual non-concessional contributions cap is $100,000. Any contributions above this limit will incur extra tax. This will be available to members aged 67 to 74 if they meet the work test (that is, if they work 40 hours within a 30-day period each financial year).

If you're under 65

You can contribute up to $300,000 in total over a three-year period, depending on your total super balance (on 30 June of the previous financial year). This is known as the 'bring-forward' rule. Visit ato.gov.au for more details.

If you're between 65 and 74

You can contribute up to $100,000 each year, provided you satisfied the work test in that financial year. Under the work test exemption (effective from 1 July 2019), you can make voluntary contributions for an additional 12-month period from the end of the financial year in which you last met the work test, as long as:
• your total super balance is below $300,000 at the end of the previous financial year
• you satisfied the work test in the previous financial year
• you have not previously relied on the work test exemption.

There’s no ‘bring-forward’ option if you’re 65 or over. Please see page 8 of our Super Member Guide – Additional Information for proposed changes to the ‘bring-forward’ rule for those aged 65 and 66.
 

If your super balance is greater than $1.6 million, you can't make non-concessional contributions nor will you be able to receive the government co-contribution.

Do you have questions about the co-contribution scheme?

Call us and we'll be able to help.

Get in touch

including assessable income, fringe benefits and reportable super contributions

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