Super Co Contributions Give Guaranteed 150% Return

If you earn less than $31,920 and pay $1000 cash to your Australian super fund before the last week of June 2010 than the federal government will deposit an extra $1500 in your super account 🙂

For several years the government contributed up to $1.50 for every dollar of personal contributions, up to a maximum of $1500/income year.

From 1 July 2009 the Government will temporarily reduce the co-contributions matching rate and maximum amount payable by the Government as a co-contribution on an individual’s eligible personal non-concessional super contribution.

Under this measure, the new matching rates will be:

  • 100% % ($1.00 for every $1.00) for the 2009-10, 2010-11 and 2011-12 financial years, with a maximum co-contribution of $1,000
  • 125%% ($1.25 for every $1.00) for the 2012-13 and 2013-14 financial years, with a maximum co-contribution of $1,250
  • 150% % ($1.50 for every $1.00) from 2014-15 onwards, with a maximum co-contribution of $1,500.

The Superannuation Co-contributions Scheme assists low to middle income earners increase retirement savings by making additional superannuation contributions. The government makes a contribution to a person’s superannuation account if these conditions are met (as at 2007):


  • that person makes a Personal contribution (from money they already have) to their Superannuation fund or Retirement Savings Account, and
  • 10 per cent or more of their total income for the income year is from eligible employment, running a business or a combination of both, and
  • their total income (assessable income plus reportable fringe benefits) is below $61,920 per annum in 2008–09, and
  • the person is still under 71 years of age at the end of June that year.

The maximum co-contribution reduces by 5 cents for every dollar a person’s total income exceeds $31,920. Entitlement to a superannuation co-contribution ceases once a person’s total income equals, or exceeds, $61,920 per annum.

To work out the Super Co-contribution you could be eligible to receive based on your income and personal super contributions use this Super Co-contribution calculator or see the table below:

If you contribute $1,000 $500 $200
And your income* is… You will receive a Super Co-contribution of
$31,920 or less $1,500 $750 $300
in between Your maximum amount is $1,500$1000. However, you must reduce this by 5c for every dollar you earn over $31,920 up to $61,920
$61,920 or over $0 $0 $0

Effective from 1 July 2007 the thresholds will be indexed to Average Weekly Ordinary Times earnings (AWOTE), to ensure that the lower and higher income thresholds reflect changing average wages.

More details can be found in the ATO website article Super co-contribution Frequently asked questions


12 responses to “Super Co Contributions Give Guaranteed 150% Return”

  1. There are only a few weeks left to qualify for upto $1500 in Government co-contributions to your super fund by making an after-tax contribution to it before June 30 2006

    Since July 1, 2004, those on incomes of up to $58,000 have been eligible to receive a tax-free super co-contribution from the Government. To be eligible, you must earn up to 10 per cent of your income as an employee and less than $58,000 per year. You must also be under age 71 at the end of this financial year if making a contribution in 2005-06.

    The Government co-contribution is made directly to your super fund, at a rate of $1.50 per $1, provided your total income is less than $28,000. The rate of the Government co-contribution then reduces by 5¢ for each dollar you earn up to $58,000, at which point it cuts out altogether

    excerpt from SMH article “Tax facts that may save your budget”

  2. If you made an after tax contribution of $1000 to a super fund account before the June 30th deadline, but have closed that super fund account and rolled over to another one you should make sure the ATO knows so they send your $1500 co-contribution to your new super fund

    You can do so by going to , searching (top right corner) for 8676, filling out the Superannuation fund nomination form that comes up in the search results and posting/faxing it to the ATO.

  3. If you’re looking at getting the most from your super contributions, the super co-contribution is money for jam. The benefit is means-tested (and cuts out completely if your assessable income plus reportable fringe benefits exceeds $58,000) but many middle-income earners in particular may have a co-contribution entitlement they were not aware of if they’re sacrificing part of their salary into super.

    -excerpt from West Australian article “Super co-contribution a neglected option”

  4. In the 2005-06 Federal Budget, the Government announced additional amendments to the Super Co-contribution initiative. These changes allow more individuals to be eligible for the Super Co-contribution. Effective from 1 July 2007, these changes mean:

    * If you are self employed and make personal superannuation contributions, you may receive a super co-contribution providing you satisfy the eligibility requirements

    * You must quote your Tax File Number to your superannuation fund or RSA

    * The lower threshold of $28,000 will be indexed each year and

    * The higher threshold will be the lower threshold plus $30,000.

  5. “Part of the 2007 budget was an announcement that the 1.2 million low-income members who are entitled to super co-contributions in 2005-06 will receive double the Government co-contributions for that financial year as a one off gesture.”
    – excerpt from

    What this means is that if you’re entitled for a government super co-contribution of $1500 for 2005-2006, you’ll get $3000 instead. The same applies for lower entitlements eg: instead of a $500 super co-contribution you’ll get $1000.

    So if you earnt less than $28000 in 2005-2006 and followed my advice to put $1000 of your own money into super, that $1000 will turn into $1000+$3000 = $4000 which is fantastic 🙂

    PS Check your super fund to make sure the extra one off payment arrives by June 30th 2007 as promised by the treasurer.

  6. My wife who works part time will be able to take advantage of this scheme. I do believe this is the first time in my working life that I have had any benefit from the Government in any shape what so ever.

    This is a good initiative.

    EDITOR: Yes it is a good initiative, although I would have preferred a policy that cut superannuation contributions tax for all low income earners rather than just benefiting low earners who can afford to keep $1000 cash unspent each year.

  7. Wow I’m wishing that I lived in Australia now, that sounds like a steal of a deal

  8. That sounds like an awesome deal. Anyone who doesnt do this is a fool. I would love to get my IRA matched 150%

    EDITOR: For non-american readers, Dave is referring to his American Individual Retirement Account

  9. “The tax office actually hands back a big chunk of the tax collected from super through Government co-contributions. This underlines just how many smart fund members are taking advantage of this opportunity.

    In 2006-07, the tax office collected $7.51 billion in tax on super contributions and fund earnings – up 39% on the previous year – and gave away more than $1.9 billion in co-contributions”
    – source “The great super give-away”

  10. Very cool…we have something similar EPF (Employees Privident Fund) here in india, where corporates match every rupee contribution made by the employee…but the government’s PPF (Public provident fund) has no such provision…how i wish that EPF schemes make it 150% and PPF schemes atleast try to make some minimal contribution?

  11. Any idea what the lowest fees super is ? I am with AMP and its such a ripoff. I just want a cash and bonds super – so I dont see the point in paying 2% as fees each year..

  12. Ohh i wish i lived in Australia…it’s just like the steal of a deal. Middle-income earners in particular may have a co-contribution entitlement they were not aware of if they contributed after tax money into super.

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