Super contributions: Government co-contributions scheme

If you make after-tax personal contributions into your super, you may be eligible for a top-up from the Government called a Government Co-contribution.

With the Government's super co-contribution scheme, if you are eligible and your total income* is $39,837 or less (for 2020/21), then you will receive 50 cents from the Government for every after-tax dollar you contribute to super up to a maximum of $500.

The co-contribution amount decreases by 3.333 cents for every dollar earned over $39,837, until it reaches zero at $54,837 (for 2020/21). The maximum co-contribution is $500.

You may be eligible for the co-contribution if:

  • you make an eligible personal super contribution by 30 June each year into a complying super fund or retirement savings account

  • your total income* for the financial year is less than the higher income threshold ($54,837 for 2020/21 before tax)

  • 10% or more of your total income is from eligible employment, carrying on a business or a combination of both

  • you are less than 71 years old at the end of the financial year

  • you are not a temporary resident at any time during the financial year (unless you are a New Zealand citizen, or it was a prescribed visa)

  • you lodge your income tax return for the relevant income year.

  • have a total super balance less than the transfer balance cap ($1.6 million for the 2020/21 financial year) at the end of 30 June of the previous financial year

  • have not contributed more than your non-concessional contribution cap

You can see the amount of co-contribution that may be paid to your account based on the amount of personal contributions at the ATO website.

How does the super co-contributions scheme work?

The Australian Taxation Office (ATO) will assess your eligibility and, if applicable, determine the government contribution amount based on the information the ATO obtains from your income tax return and other sources, including contributions information provided by us. For further information about government co-contributions, including eligibility requirements, please visit the ATO website.

* Total income is defined as:

  • assessable income, plus
  • reportable fringe benefits, plus
  • reportable employer super contributions (RESC)**
  • less allowable business deductions. (Deductible contributions to super and work-related employee deductions are not allowable business deductions and cannot reduce 'total income'.)

**RESC are generally salary sacrifice contributions to super or amounts that you could have chosen to receive as salary or wages. RESC does not include superannuation guarantee contributions.

Superannuation is a long-term investment. The Government has placed restrictions on when you can access your preserved benefits. The Government has set caps on the amount of money you can add to superannuation each year on a concessionally taxed basis. In addition, the Government has set a non-concessional contributions cap. For more detail, speak with a financial adviser or visit the ATO website.

Last updated 26 October 2020.

The information shown on this site is general information only, it does not constitute any recommendation or advice; it has been prepared without taking into account your personal objectives, financial situation or needs and you should consider its appropriateness with regard to these factors before acting on it. Any taxation position described is a general statement and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and our interpretation. Your individual situation may differ and you should seek independent professional tax advice. You should also consider obtaining personalised advice from a professional financial adviser before making any financial decisions in relation to the matters discussed hereto.

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