If you’re not on a high income, you may be eligible for a co-contribution from the Government. This means that for every $1 you contribute to your super from your after tax income (and provided you don’t claim a tax deduction in relation to the contribution), the Government will match it with $0.50 up to a maximum of $500.
To receive the maximum of $500 you must earn $38,564 or less, and make a personal (after-tax) contribution of $1,000 or more. As your income increases, the co-contribution reduces and it cuts out completely at $53,564.
You don’t need to apply for the super co-contribution. If you are eligible, the Australian Taxation Office (ATO) will determine the amount you are entitled to when you lodge your tax return and pay the contribution directly to your super fund.
Am I eligible?
You may be eligible for the Government co-contribution if:
- your total income1 is less than $53,564 for the 2019/2020 financial year;
- you made a non-concessional (after-tax) contribution before 30 June of the financial year and did not exceed the non-concessional contributions limit;
- 10% or more of your total income is earned as an employee, running a business or a combination of both;
- you are under age 71 at the end of the financial year;
- you did not hold an eligible temporary resident visa at any time during the financial year;
- you have lodged a tax return for the financial year; and
- you have a Total Superannuation Balance (across all Funds) less than $1.6 million on 30 June.
You are not entitled to a super co-contribution for any personal contributions you have made that have been claimed as a tax deduction.
Additional Information - How super works 292.07 KB PDFDownload
1 Your total income is the sum of your assessable income for the financial year, your reportable fringe benefits total (RFBT) for the financial year, and your total reportable employer super contributions for the financial year less any allowable business deductions. For more information please visit the ATO website.