Government Co-contribution Scheme

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The Government co-contribution scheme

The co-contribution is a Government initiative to assist eligible individuals to save for their retirement. If you are eligible and make personal contributions to your superannuation fund, the Government will match your contributions
with a super co-contribution (up to certain limits).

The amount of co-contribution you may receive is determined by your income and the amount of your own after-tax contributions.  Income must be below a maximum threshold to qualify.

Am I eligible?

Each year, you will be eligible for the co-contribution if you meet the following conditions:

• You make personal (after-tax) superannuation contributions to a complying superannuation fund by 30 June each year(not salary sacrifice contributions or contributions for which you claim a tax deduction ).
• Your total income is less than the upper income threshold ($61,920 for 2010/2011 and 2011/2012).
• 10% or more of your total income is from eligible employment and/or running a business.
• You are not a temporary resident of Australia.
• You lodge an income tax return for the year of income.
• You are less than 71 years old at the end of the year of income

Income for co-contribution purposes is the total of your assessable income, your reportable fringe benefits and your reportable employer super contributions. This may be different to your taxable income.

How much might I receive?

The maximum co-contribution is $1,000.  The co-contribution you are entitled to is the lesser of

• the calculated co-contribution amount (based on the formula adjacent),

• the amount of personal contributions x1 (to the maximum $1,000)

 Co-contribution formula $1,000 - (YOUR INCOME - LOWER INCOME THRESHOLD) x 0.03333

Visit the ATO website for more information

The maximum co-contribution of $1,000 will apply if you have a co-contribution income of $31,920 (the current lower income threshold) or less and have made a personal contribution of at least $1,000.

The co-contribution cuts out when your income reaches the upper threshold (currently $61,920). If your co-contribution entitlement is greater than $0 and less than $20 the Government will pay the minimum amount of $20.

Ready Reckoner

The table below shows the amount of co-contribution received based on different income levels and personal contribution amounts.

If you post-tax super contribution is:

Can I choose where the co-contribution is deposited?

The co-contribution will generally be paid directly into the superannuation account to which you made your personal superannuation contribution, providing that fund will accept the co-contribution. If you wish to have your co-contribution paid into a particular superannuation fund, you can complete the Australian Taxation Office (ATO) Superannuation Fund Nomination form from www.ato.gov.au or phone the ATO on 13 10 20.

How will I know that I have received the co-contribution?

The ATO will send you a letter with details about your co-contribution after it has been paid to your superannuation fund. Your superannuation fund should include the co-contribution on your next statement.

How do I make personal contributions to RecruitmentSuper?

RecruitmentSuper makes it easy for you to make personal contributions:

• One off contributions – you can make a member contribution at any time by cheque, BPAY® or direct credit.

• Regular contributions – can be set up as a direct debit and maintained through Online Services 

• Payroll deduction – you can arrange for your employer to regularly deduct an agreed amount from your after tax pay and send it to RecruitmentSuper

Its easy to make personal contributions

For more information see additional contributions

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