Government Co-Contribution

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The Government Co-contribution commenced on 1 July 2003 and replaced the tax offset for personal superannuation contributions. Further changes came into effect on 1 July 2004. The Government will now put in $1.50 for every $1 you put into your superannuation as a personal contribution, up to a maximum of $1,500 a year (for $1,000 of contributions).

The $1,500 maximum co-contribution is available for incomes up to $30,342, reducing by 5 cents for each dollar of income up to $60,342 in the 2008-2009 financial year.

This means that a person earning $27,000 who contributes $300 will get a $450 co-contribution, or $1,500 if they contribute $1,000. The Australian Tax Office (ATO) is responsible for administering the co-contributions scheme.

How does the co-contribution end up in your super account?

The ATO will work out if you are entitled to a co-contribution using information from your tax return and your super fund. In order for them to do this, you must lodge an income tax return. If you are eligible, the ATO will then pay the co-contribution directly into your super account where it must remain until you retire (ie: it is treated as a preserved benefit).

Although you are not required to give your Tax File Number to us, we will not be able to accept your contribution without it and you will not be able to receive the co-contribution. The ATO will send you a letter with details about your co-contribution amount after it is deposited into your account. Unless you nominate a particular account to the ATO, your co-contribution will generally be paid into the super fund where you made your personal contribution.

Are you eligible?

According to the ATO, you may be eligible for a co-contribution if :

• You make personal contributions to a complying superannuation fund, as long as the contributions are not salary sacrifice contributions, and you are not entitled to claim a tax deduction for them; and
• Your assessable income and reportable fringe benefits are less than $60,342 (current limit as at
  1 July 2008) for the 2008/2009 financial year; and
• You lodge an income tax return for the financial year; and
• You are less than 71 years old at the end of the financial year in which you made your personal contributions; and
• You are not a temporary resident of Australia.

How do you make extra contributions to your super?

Contact us for details of how you can make a personal contribution.

What amount of co-contribution might you be eligible for?

You can use our Super Co-contribution Calculator located in our tools section, to work out the co-contribution you could be eligible to receive.

Would you like more information?

You can visit the ATO’s site or contact us for more information.