You probably recognise a good opportunity when you see one, so why not take advantage of the government co-contribution scheme to give your super a boost. It’s literally free money.
If you earn less than $61,920 during the 2009-10 financial year you can take advantage of the Government co-contribution scheme and receive up to $1,000 free cash for your super account. '
To be eligible for the co-contribution payment, you must meet the following eligibility requirements:
- Receive 10% or more of your total income (assessable income ad reportable fringe benefits) from eligible employment, for example, as an employee or running a business, or both
- Your total income for the 2009-10 financial year is less than $61,920 including reportable fringe benefits, assessable income and reportable superannuation contributions.
- Be a permanent resident of Australia
- Be under 71 years of age
- Make personal (after-tax) contributions to your super account
- Lodge a tax return for 2009/2010 financial year.
If you're eligible and your total income is $31,920 a year or less (or about $1,078 a fortnight after tax), for every $1 you personally pay into your super, the government will match it dollar for dollar, up to a limit of $1,500 a year. It’s money for nothing. If your total income is more than $31,920, Government co-contributions reduce by 3.33¢ per extra dollar of income and phases out once your income reaches $61,920 p.a. Conditions apply.
The table below shows how much you could receive. Or calculate exactly how much you could get with the ATO's calculator here.
|
If your personal contribution for the year is: |
|
$1,000 |
$800 |
$500 |
$200 |
| And your income is: |
Your co-contribution will be: |
| $31,920 or less |
$1,000 |
$800 |
$500 |
$200 |
| $35,920 |
$867 |
$800 |
$500 |
$200 |
| $41,920 |
$667 |
$667 |
$500 |
$200 |
| $45,920 |
$533 |
$533 |
$500 |
$200 |
| $51,920 |
$333 |
$333 |
$333 |
$200 |
| $55,920 |
$200 |
$200 |
$200 |
$200 |
| $61,920 and above |
$0 |
$0 |
$0 |
$0 |
The process
If you are eligible, all you need to do is make personal (after-tax) contributions to your superannuation fund and lodge an income tax return. The Australian Taxation Office (ATO) will use the information on your income tax return and contribution information they receive from HOSTPLUS Executive to work out whether you are eligible. If you are, the ATO will automatically calculate the co-contribution amount and deposit it into your superannuation account.
Your co-contribution is payable after:
- you have lodged your income tax return
- HOSTPLUS Executive has lodged a member contributions statement for you by 31 October each year, and
- the ATO has received any additional information required.
Once the ATO has received all the necessary information, your co-contribution should be paid to your superannuation account within 60 days. The ATO will then send you a letter with details of your co-contribution. The ATO will also add any interest to your co-contribution if they make the payment late.
The co-contribution will generally be paid directly into the superannuation account to which you made your personal superannuation contribution, providing that fund will accept the co-contribution. If you wish to have your co-contribution paid into a particular superannuation fund, you can complete a Superannuation Fund Nomination form or phone the ATO on 13 10 20 for more information.
Maximise your super with the Super Cs
Finding out if you're eligible for a co-contribution from the government is a 'Super C'. There are four other Super Cs that could help you maximise your super.