What's not to like about free money?
You contribute an amount into your super, and the government will add to it, giving your super an extra boost.
But to benefit for this financial year, you must put an extra payment into your super before June 30.
Who's eligible, and how do I apply?
You could be eligible to receive a co-contribution from the government if your income is $61,920 or less in the current financial year.
Check out how much extra the government could contribute in the table below, based on your income and how much you would like to put in.
You don't even have to apply or fill in any forms. Simply make an extra personal contribution, and when you lodge a tax return for that financial year, the Australian Taxation Office (ATO) will assess your eligibility, calculate your co-contribution and deposit it into your superannuation account within 60 days. The ATO will then write to you to give you details of your co-contribution.
What is a personal contribution?
Personal contributions are the amounts you chose to contribute to your complying super fund from your after tax income.
The following contributions do not attract the co-contribution:
- Contributions made by your spouse, employer or any other party on your behalf
- Salary sacrifice contributions
- Contributions that you claim a tax deduction on
Estimate only. Does not consider your personal circumstances.;Assumptions:Opening balance $10,000 at age 28, annual salary $31,920, $1,000 yearly after tax contribution, $1,000 annual Government co-contribution, 9% employer contributions, 7.5% Balanced Option investment return, long-term inflation rate of 2.5%, 9.0% investment earning tax, $1.5 weekly administration fee, 0.61% investment manager fee, retirement age of 65. Final balances expressed in today’s dollars, calculated over a 37 year investment period. Source:moneysmart.gov.au/tools-and-resources/calculators-and-tools/superannuation-calculator.
You can see the difference
The graph above shows how a yearly payment of $1,000 could grow over time. In this example a 28 year old pays $1,000 into their super, picks up their free cash from the government and then watches it grow until they retire at 65. That could mean an extra $129,111 to enjoy in retirement.
It's also easy to do.
In fact, you can make an extra payment right now and get a government co-contribution (if you qualify: see full criteria below). Or you can make a payment through your online bank via BPay® using biller code 58560 and your reference code. Call us on 1300 HOSTPLUS (1300 467 875) 8am-8pm weekdays for your payment reference code. You could even ‘set and forget' an ongoing amount via direct debit to give your super a continuing boost.
Find out more about how to make a personal contribution.
Tempting isn't it?
You're eligible to receive a co-contribution payment if you meet these criteria:
- You receive 10% or more of your total income (assessable income and reportable fringe benefits) from eligible employment, for example, as an employee or running a business or both.
- Your total income for the 2010-11 year is less than $61,920 including reportable fringe benefits, assessable income and reportable superannuation contributions.
- Be a permanent Australian resident.
- Be under 71 years of age at the end of the year the income was earned.
- Make personal (after tax) contributions to your super account.
- Lodge a tax return for the 2010-11 financial year.
How it works
If you're eligible and your total income is $31,920 a year or less (or about $1,078 a fortnight after tax), for every $1 you personally pay into your super, the government will match it dollar for dollar up to $1,000 a year. It's money for nothing.
Government co-contributions reduce by 3.33 cents for every dollar your total income (less allowable business deductions) exceeds $31,920, up to $61,920.
Co-contributions will generally be paid to the super account that you made your personal contribution to, but if you wish to have it paid into another super account you can complete a Superannuation Fund Nomination form or call the ATO on 13 10 20 for more information.
Read the co-contributions fact sheet