Jump Start Your Super
If you qualify, the Government will now contribute $1.50 for every $1 of your personal superannuation contributions, up to $1,500. Known as the "co-contribution", it's a great way to boost your retirement savings.
To qualify in the 2008/2009 tax year, you will need to:
- make a personal contribution out of after-tax salary to a complying superannuation fund or an RSA
- have an "assessable income" plus "reportable fringe benefits" of less than $60,342
- lodge an income tax return for the year of income
- not hold an eligible temporary resident visa at any time during the year
- be less than 71 years old at the end of the year of income
How much could you get?
We have launched a new Super Co-Contribution calculator. The calculator can be used to work out the superannuation co-contribution you could be eligible to receive.
Here's how you calculate your co-contribution. The maximum co-contribution of $1,500 will apply to earnings of $30,342 or less. The co-contribution cuts out when your income reaches $60,342 as shown in the table below.
| $30,342 or less |
$1,500 |
| $32,342 |
$1,400 |
| $34,342 |
$1,300 |
| $36,342 |
$1,200 |
| $38,342 |
$1,100 |
| $40,342 |
$1,000 |
| $42,342 |
$900 |
| $44,342 |
$800 |
| $46,342 |
$700 |
| $48,342 |
$600 |
| $50,342 |
$500 |
| $52,342 |
$400 |
| $54,342 |
$300 |
| $56,342 |
$200 |
| $58,342 |
$100 |
| $60,342 |
$0 |
The above table shows the co-contributions amounts payable for people on a range of incomes, who make eligible personal contributions to superannuation.
The thresholds will be subject to indexation, but the maximum co-contribution is fixed at $1,500 under present legislation.
How do you claim?
Easy as pie.
You don't even have to apply for the Co-Contribution. The Tax Office will calculate your entitlement using information from your superannuation fund and tax return.
If you make a voluntary contribution to RecruitmentSuper that is eligible for a Co-Contribution the government will make the Co-Contribution in the following tax year, as the amount of the Co-Contribution is based on information in your tax return. This means that if you make an eligible voluntary contribution in the 2008/2009 tax year, the Government will make the Co-contributions in the 2009/2010 year. It will appear on your 2010 annual member statement.
Other considerations
Like your personal contributions, co-contributions will be treated as non-concessional contributions for taxation purposes. This means that they will not be subject to any taxation when paid to the fund and will not be taxed as an end benefit. The earnings on co-contributions will receive concessional tax treatment like any other earnings in your superannuation fund.
Personal contributions and co-contributions must be preserved in the fund, which means they can generally only be accessed when you reach your preservation age, or satisfy grounds for releasing your benefit.
So, if you earn less than $60,342 this tax year, you have a great opportunity to increase your superannuation savings with some welcome help from the government!
For more information
A fact sheet is also available through the ATO's website.
