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
|$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