Government Super Co-Contribution

What is the Government Super Co-Contribution?

To help you save for retirement, the Government has an incentive program that rewards you for making eligible personal contributions to your superannuation fund.

If your total income for the year does not exceed $38,564 in 2019-20 ($37,697 for 2018-19), the Government will match your eligible superannuation contributions by 50 cents per dollar up to a maximum of $500 pa.

The superannuation co-contribution phases down for eligible individuals with total income between the lower and higher income thresholds. The superannuation co-contribution is tapered by a rate of 3.333 cents for each dollar of total income for the year that exceeds the lower income threshold.

The superannuation co-contribution ceases once the upper threshold is reached. The upper threshold is $15,000 above the lower threshold making it $53,564 for the 2019-20 year ($52,697 for 2018-19).

You may be eligible for the Government superannuation co-contribution if:

• you make an eligible personal superannuation contribution to a qualifying superannuation fund during the financial year,
• an eligible personal superannuation contribution is a non-concessional (after tax) contribution made to a superannuation fund. It does not include contributions that attract an income tax deduction. Other exclusions apply such as transfers from foreign superannuation funds and roll-overs.
• your total income is less than $53,564 for 2019-20 ($52,697 for 2018-19), made up of assessable income plus Reportable Fringe Benefits and Reportable Employer Superannuation Contributions reduced by eligible deductions (if any) from carrying on a business,
• you are under 71 years old at the end of that tax year,
• you lodged an income tax return for that financial year,
• you have not held a temporary resident visa at any time during the financial year,
• you earned 10 per cent or more of your total income from running a business, being self-employed or from eligible employment or a combination of both.
• your total superannuation balance at the 30th June of the previous financial year was less than $1.6 million
• your non-concessional contributions have not exceeded the non-concessional contributions cap for the year

What do you have to do?

1. Assuming you earn less than $53,564 (‘total income’) for the 2019-20 year ($52,697 for the 2018-19 year), you then make a non-concessional (after-tax) contribution to your superannuation fund.
2. You lodge your tax return.
3. Within 60 days, the Government pays the co-contribution into your superannuation fund.

NOTE: Your superannuation fund cannot accept after-tax contributions, or receive co-contributions on your behalf, if you have not provided your Tax File Number (TFN) to your fund.

How much will you be entitled to (2019-20)?

See our graph below: 

If you're looking for more information or advice about your superannuation - or any of your tax affairs - our H&R Block consultants may be able to assist. Contact us today.

This information sheet is intended as a guide for H&R Block clients. All actual detail and circumstances differ, please discuss your situation with an H&R Block Tax Consultant. Use one of our Taxsaver envelopes to keep all your receipts and documents for the year. Remember – if you are not sure if you can claim an expense, keep the receipt and we will ensure that we claim all allowable deductions and rebates for you whilst preparing your tax return. H&R Block is Australia’s largest network of tax accountants with over 470 offices. Every year we help thousands of Australians achieve a better taxation result. For your nearest office call 13 23 25.

September 2019