Are you eligible for a Government co-contribution?
13 July 2022
Your super balance could get a boost if you’re eligible for the Government co-contribution.
The co-contribution is a payment of up to $500 per year made to eligible low and middle income earners who make personal (after-tax) contributions to their super.
How does it work?
If you’re eligible your co-contribution payment amount will depend on your income and how much you have contributed to super.
If your income is under $43,445p.a.*, the Government will contribute 50 cents to your super for every $1 you contribute yourself from your after-tax income, up to a maximum co-contribution payment amount of $500.
This co-contribution payment amount reduces for every dollar you earn over $43,445p.a. up to the maximum income limit of $58,445p.a*. Once you reach this maximum income limit you are no longer eligible for a co-contribution payment.
For example, if you meet the eligibility criteria below, earn less than $43,445p.a.* and make an after tax personal contribution of $1,000 to your super, you could be entitled to the maximum co-contribution of $500.
Are you eligible?
To be eligible for the co-contribution you must:
- Make a personal after tax contribution (non-concessional contribution) into your super during the financial year, but not contribute more than your non-concessional contributions cap
- Have a total income (includes assessable income, reportable fringe benefits and reportable employer superannuation contributions) for the financial year of less than $58,445*
- Earn 10% or more of your total income from your employment, running a business, or both
- Be under 71 years of age at the end of the financial year
- Lodge an Australian tax return for the financial year
- Have not held a temporary resident visa at any time during the financial year
- Have a total superannuation balance of less than $1.9 million* as at 30 June of the previous financial year
You are not able to receive a co-contribution for any personal contributions you have claimed a tax deduction for.
How do you receive the payment if you’re eligible?
You don’t need to do anything. The Australian Taxation Office (ATO) will assess your eligibility when you submit your tax return and will automatically calculate and pay your co-contribution into your super account.
Find out more
To find out more about the government co-contribution and calculate how much you could be eligible to receive visit the ATO website.
Our team are here to help you with any questions you have about contributing to your super. Call us on 1800 692 877.
*These income amounts are for the 2023-24 financial year. Source: ato.gov.au/Rates/Key-superannuation-rates-and-thresholds/?anchor=Supercocontributions. This article provides general information only and does not take into account your personal financial situation or needs. Before acting, you should review the Product Disclosure Statement (PDS) to ensure you have all the information about the relevant BUSSQ product and how it works and consider the appropriateness of the information to your needs or obtain financial advice tailored for your personal circumstances. You can download BUSSQ's PDSs and Target Market Determinations or call us to request a copy. Prepared by BUSS(Queensland) Pty Ltd ABN 15 065 081 281, AFSL 237860, Trustee for Building Unions Superannuation Scheme (Queensland) (BUSSQ) ABN 85 571 332 201.