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Government co-contributions |
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If your total income is under $58,980 a year you can take advantage of the Government co-contribution scheme and receive up to $1,500 free cash for your super account.
 Am I eligible for super co-contributions and how much could I get?
To be eligible for the co-contribution payment, you must meet the following eligibility requirements:
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Receive 10% or more of your total income from eligible employment, for example, as an employee
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Your total income is less than $58,890
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Be a permanent resident of Australia
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Be less than 71 years of age
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Make personal (after-tax) contributions to your super account
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Lodge a tax return for 2007/2008 financial year.
If you're eligible and your total income is $28,980 a year or less, the Government will contribute $1.50 for every $1 of personal contributions you make, up to a limit of $1,500 a year. It’s money for nothing. If your total income is more than $28,980, Government co-contributions reduce by 5¢ per extra dollar of income and phases out once your income reaches $58,980 p.a. Conditions apply. The table below shows how much you can look forward to receiving. To calculate exactly how much you could get click here.
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If your personal contribution for the year is: |
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$1,000 |
$800 |
$500 |
$200 |
| And your income is: |
Your co-contribution will be: |
| $28,980 or less |
$1,500 |
$1,200 |
$750 |
$300 |
| $30,980 |
$1,400 |
$1,200 |
$750 |
$300 |
| $34,980 |
$1,200 |
$1,200 |
$750 |
$300 |
| $40,980 |
$900 |
$900 |
$750 |
$300 |
| $44,980 |
$700 |
$700 |
$700 |
$300 |
| $50,980 |
$400 |
$400 |
$400 |
$300 |
| $54,980 |
$200 |
$200 |
$200 |
$200 |
| $58,980 and above |
$0 |
$0 |
$0 |
$0 | Do I need to apply for super co-contributions?
No, you do not need to apply for the co-contribution or fill in any additional forms. If you are eligible, all you need to do is make personal (after-tax) superannuation contributions to your superannuation fund and lodge an income tax return. The Australian Taxation Office (ATO) will use the information on your income tax return and contribution information they receive from HOSTPLUS to work out whether you are eligible. If you are, the ATO will automatically calculate the co-contribution amount and deposit it into your superannuation account.
When will my super co-contribution be paid?
Your co-contribution is payable after:
- you have lodged your income tax return
- HOSTPLUS has lodged a member contributions statement (MCS) for you by 31 October each year, and
- The ATO has received any additional information required.
Once the ATO has received all the necessary information, your co-contribution should be paid to your superannuation account within 60 days. The ATO will then send you a letter with details of your co-contribution. The ATO will also add any interest to your co-contribution if they make the payment late.
What is a "personal superannuation contribution"?
Personal superannuation contributions are the amounts you choose to contribute to your superannuation fund from your after tax income. This is in addition to any employer contributions and any contributions made through a salary sacrifice arrangement.
You must make one or more personal superannuation contributions during the income year to obtain the co-contribution for yourself. The contributions must be made to a complying superannuation fund or retirement savings account (RSA).
The following superannuation contributions do not attract the co-contribution:
- contributions made by your spouse, employer or any other party on your behalf
- salary sacrifice contributions (these are considered to be employer contributions).
Can I choose where the super co-contribution is deposited?
The co-contribution will generally be paid directly into the superannuation account to which you made your personal superannuation contribution, providing that fund will accept the co-contribution.
If you wish to have your co-contribution paid into a particular superannuation fund, you can complete a Superannuation Fund Nomination form or phone the ATO on 13 10 20 for more information.
I am self-employed - am I eligible for the super co-contribution?
As of 1 July 2007, co-contribution payments are available to people who are self employed provided you meet the following eligibility requirements:
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Your total income is less than $58,890 in a financial year
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10% or more of your total income is from running a business, eligible employment or a combination of both
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You're a permanent resident of Australia
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You're less than 71 years of age
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You make personal (after-tax) contributions to your super account
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You lodge a tax return for 2007/2008 financial year.
If you are not eligible for the co-contribution payment because your total income is more than $58,980 a year, you may still claim a deduction for your concessional (before-tax) superannuation contributions.
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