About the Super Co-Contribution
If you are a low or middle-income earner, you may be able to take advantage of the super co-contribution payment by making eligible personal super contributions to your super fund. The Government will then match your personal super contributions up to the maximum amount.
The maximum super co-contribution payable, and the way the Government works out this amount depends on the financial year in which you made your eligible personal super contributions.
You don’t need to apply. If you’re eligible, all you need to do is make eligible personal super contributions to your super fund and complete the A3 government super contribution labels in your income tax return.
You may be eligible for a Government co-contribution if:
- you make voluntary after-tax contributions to a super fund before 30 June,
- your total income is less than $46,920 p.a,
- you are under 71 years old at 30 June,
- you lodge an income tax return for the financial year,
- you are a permanent resident,
- you earned 10 per cent or more of your total income from running a business, or from eligible employment or a combination of both.
If you’re not eligible for Government co-contribution, you could still get some great financial benefits through salary sacrifice.
How much will you be entitled to?
|
Your total income |
You pay |
Your reward |
| $31,920 | $1,000 | $500 |
| $35,000 | $794 | $397 |
| $40,000 | $460 | $230 |
| $45,000 | $128 | $64 |
| $46,920 | $0 | $0 |
Super co-contribution and tax
The super co-contribution is:
- not subject to tax when it is paid to your super fund,
- not included as income in your tax return,
- preserved in a super fund and can only be accessed when other preserved amounts can be accessed – that is, when a condition of release has been met.
Earnings on the super co-contribution will be taxed like any other earnings of the super fund provider.
