Government contributions to help you - BUSSQ

Government contributions to help you

If you are on a low or middle income, you have a significant incentive to contribute to your superannuation fund to save for your retirement. The Government are offering to contribute a maximum of $0.50 for every $1 you contribute to a maximum of $500 to your super fund, depending on your assessable income in a financial year – that’s potentially a 50% return on your investment!

You may be eligible for a Government co-contribution if you:

  • Have made an eligible, after tax, personal super contribution during the financial year (salary sacrifice contributions are made before-tax and don’t count towards the Government co-contribution)
  • Earn less than $52,697* (2018/19) per year (including assessable income, fringe benefits and reportable super contributions)
  • Earn 10% or more of your income from eligible employment, running a business, or both
  • Have a total super balance of under $1.6 million
  • Have not contributed more than your non-concessional contribution cap
  • Are a permanent resident of Australia aged under 71 at the end of the financial year in which you make a payment, and
  • Lodge a tax return for the financial year.

How much you’ll receive depends on your income. For every dollar you contribute from your after-tax income, the Government will put in 50 cents, up to a maximum of $500. Use the table below:

Your total income* Co-contribution available  Your contribution 
$0 - $37,697 $500 $1,000
$37,697 - $52,697

$500.00 - ($0.03333 x (total income - $37,697.00)) 

Up to $1,000
$52,697 + $0  N/A

How is the Government co-contribution paid?

If you're eligible, the Government will pay the co-contribution directly into your super account after you've put in your tax return for the financial year in which you made the contribution.

For example, if you add to your super before 30 June 2019, you'll receive your Government co-contribution after you've lodged your 2018/19 tax return.

How can I make my after tax contributions?

BUSSQ lets you make lump sum contributions via BPAY. You can also make regular contributions through your employer via a payroll deduction.

Please note, if you are making a contribution using BPAY, please allow time for the transfer to be received by us by 30 June. Please ensure that you use the correct reference numbers so we can allocate your contribution. Contributions that are unable to be allocated may be sent to the ATO.

How do I add to my super?

  1. BPay® - Transfer specified amounts direct from your bank account to your BUSSQ account. To find out more, contact BUSSQ or logon to MemberAccess and click through to 'Payment Methods' for the BUSSQ BPAY Biller Code and your individual BPAY Reference Number.
  2. Payroll deduction (if provided by your employer) - Speak to your employer to arrange deductions of personal contributions from your pay. To be eligible for the co-contribution your employer should make contributions from your pay after tax is deducted.

What else do I need to know?

Your personal after tax contributions and the Government co-contribution:

  • Cannot be accessed until your retirement
  • Will not be subject to any tax when paid into your super account, and
  • Will not be taxed when you are able to access it on retirement.

Interested – ACT NOW

Speak to an expert at no extra cost to find out if you’re eligible for the Government co-contribution.

We provide members with access to financial advice about contributing to their super at no extra cost, via Skylight Financial Solutions. A financial planner can advise if you’re eligible for the Government co-contribution and discuss how it might work for you. 

Simply call BUSSQ on 1800 MY BUSSQ (1800 692 877) and ask to speak with a financial planner about Government Co-contributions over the phone.

* Assessable income, plus reportable employer super contributions, plus reportable fringe benefits for the 2018/19 financial year.