Making voluntary contributions to your super could boost your balance in more ways than one. You could qualify for a bonus top up from the Government.
What is the super co-contribution?
The Government’s super co-contribution is an initiative to help you save for retirement. If you are eligible and make personal after-tax (non-concessional) superannuation contributions, you will receive a bonus contribution to your super from the Government. This bonus is called a super co-contribution.
Am I eligible to receive a co-contribution?
You will be eligible for the super co-contribution in a year of income if:
- You make personal superannuation contributions to your super by 30 June;
- Your ‘total income’ (assessable income plus reportable fringe benefits) is less than $50,454 (this may be different from your taxable income, for example money you have salary sacrificed is still counted in your total income even though you don’t pay income tax on it);
- 10% or more of your total income is from eligible employment, running a business or a combination of both;
- You do not hold an eligible temporary resident visa at any time during the financial year, unless you are a New Zealand citizen or holder of a prescribed visa;
- You lodge an income tax return for the relevant financial year;
- You are less than 71 years old at the end of the relevant financial year.
Remember, a personal contribution must come directly from you. If your spouse makes a contribution to your account it will not attract a co-contribution.
How much will I receive from the Government?
If your total income for co-contribution purposes is $35,454 or less for the 2015/16 financial year, you can receive a contribution from the Government of up to $500 tax-free. The Government will give you $0.50 for every dollar you put in, up to this maximum amount.
For each dollar you earn more than $35,454, the maximum co-contribution progressively reduces, and becomes nil when you earn $50,454 or more.
For an estimate of your super co-contribution entitlement and eligibility visit the Australian Tax Office’s (ATO) super co-contribution calculator.
It’s simple to qualify for the Super Co-contribution.
Qualify for the super co-contribution
You can make a personal contribution to VISSF as a lump sum, or have regular deductions made from your pay.
For one-off personal after-tax contributions simply visit www.vissf.com.au and log in to Member Online to access your BPAY details. For regular deductions contact your Payroll or Human Resources department.
Concessional (before-tax or salary sacrifice) contributions are not counted for co-contribution purposes.
You don't need to apply for the co-contribution
You don’t need to complete any applications to receive your co- contribution. VISSF will report the personal contributions you make to the ATO for you, and if you are eligible, the ATO will send your co-contribution to your account automatically.
Your co-contribution will be made after you submit your tax return for the year.
If you have changed super funds, or have more than one super account, the ATO may send your co-contribution to your other super fund.
If your account has been closed, there could be a delay in the allocation of your co-contribution. To make sure this doesn’t happen, you can complete a Superannuation Fund Nomination Form available on the ATO website. This form allows you to nominate VISSF as the super fund you want your co-contribution to be allocated to. The ATO will then send your co-contribution directly to us.
The nomination form is available from www.ato.gov.au/super or by calling the ATO on 13 10 20.
Low income superannuation contribution
If you are eligible for the Government co-contribution then you may also be eligible for the Low Income Superannuation Contribution (LISC).
If you are on a taxable income of less than $37,000, you may get a refund from the Government of up to $500 for the contributions tax deducted from your concessional (before-tax) super contributions. The ATO will calculate how much you will be refunded and this amount will be paid directly into your super account. It may take up to 14 months from the end of the financial year for you to receive your payment.
The LISC is 15% of the before-tax super contributions you or your employer pays into your super fund for the 2012/13 to the 2016/17 financial years.
To check if you are eligible and to see how the LISC is calculated visit www.ato.gov.au/lisc.
Discover the difference expert advice can make to your super and retirement options.
As a VISSF member, you can now access an extensive range of advice services. A qualified financial planner from our Advice Team can help you answer single questions like:
- Do I have enough money to retire?
- How much money do I need to retire?
- How long will my money last?
- Which investment option is right for me?
- Should I salary sacrifice?
- Should I consolidate my super? How?
- Do I have enough insurance cover to protect myself and my family?
You can also access simple retirement planning advice from VISSF, including advice about:
- Effective contribution strategies
- How to work less and access your super to top up your income
- How to convert your super into a regular income stream
And if you need more comprehensive financial advice, the VISSF Advice Team can arrange a face-to-face meeting with a financial planner. The first meeting is complimentary.
Call 1300 660 027 to take advantage of our new financial advice services for members.
Have any questions?
Call us: 1300 660 027
This fact sheet is issued by the Trustee of The Victorian Independent Schools Superannuation Fund (ABN 37 024 873 660, RSE Registration number R1000436, MySuper Authorisation 37024873660599) VIS Nominees Pty Ltd (ABN 11 006 586 367 Australian Financial Services Licence number 235097. Registrable Superannuation Entity Licence number L0000321). It contains general advice only. In preparing this fact sheet, the Trustee has not taken into account your objectives, financial circumstances or needs. Before making any financial decisions, you should consider your personal circumstances and seek appropriate independent advice. The individual case study samples are for illustrative purposes only.