Government Co-contribution
The co-contribution is a Government contribution, equal to $1.50 for each $1.00 of personal non-concessional (after-tax) member contributions paid to a superannuation fund in the 2008/2009 financial year.
The current arrangements provide that the amount of the co-contribution you will get depends on your income and the personal non-concessional contribution you have made during the financial year. The maximum amount of co-contribution for the 2008/2009 financial year is $1,500 and is available to people whose income is $30,342 (indexed annually) or less. This maximum or cap then phases down for every dollar of additional income and cuts out completely for incomes of $60,342 or more.
Please note, legislation changes following the 2008 Budget will mean that from 1 July 2009, certain salary sacrifice and other voluntary employer contributions will be added to income to determine eligibility for the co-contribution.
There is a temporary reduction in the superannuation co-contribution matching rate for non-concessional contributions made in the five years from 2009/2010 year through to the 2013/2014 financial year as shown in the following table:
|
Contribution year
|
Maximum co-contribution
|
|
2009 - 2010
|
$1,000
|
|
2010 – 2011
|
$1,000
|
|
2011 – 2012
|
$1,000
|
|
2012 – 2013
|
$1,250
|
|
2013 – 2014
|
$1,250
|
|
2014 – 2015
|
$1,500
|
To be eligible for the Government co-contribution, you must:
- make non-concessional contributions to a complying superannuation fund;
- have assessable income plus reportable fringe benefits of less than $60,342 (indexed annually);
- have 10% or more of your total income from eligible employment, running a business or a combination of both. Business income includes gross income as a sole trader and partnership distributions but does not include trust distributions;
- have not held an eligible temporary resident visa in any time during the year;
- lodge an income tax return for the financial year of income; and
- be less than 71 years of age at the end of the financial year of income.
Note: Any personal contributions that you choose to claim as a tax deduction will not qualify for co-contribution purposes.
The Government co-contribution scheme has been extended to include self-employed persons who are less than 71 at the end of the income year, not a temporary resident, earn 10% or more of their total income from running a business and earn below $60,342 in the relevant year.
How do I claim the Co-contribution?Members who qualify and make personal non-concessional contributions do not need to do anything. The Fund is required to provide the Tax Office with information about contributions paid by members and their employers. Using this information and the information in your tax return, the Tax Office will work out if you are entitled to a co-contribution. Any co-contribution will be sent to the Fund.
We recommend that you speak to a licensed or appropriately authorised financial adviser if you are reviewing your contribution arrangements.
More information about co-contributions can be found on the Australian Taxation Office website at www.ato.gov.au/super.