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.

From 1 July 2017, if your total income for the year does not exceed $36,813 ($36,021 for 2016-17), 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 $51,813 for the 2017-18 year ($51,021 for 2016-17).

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 $51,813 ($51,021 for 2016-17), 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 $51,813 (‘total income’) for the 2018/19 year ($51,021 for the 2016/17 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 (2017-18)? See our graph below:

Your total income Your payment The benefit
$36,813 or less $1,000 $500
$42,813 $1,000 $300
$48,813 $1,000 $100
$51,813 or more $1,000 $0

 

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

August 2017

Book a tax return appointment

Let us lodge your tax return for you. Our tax accountants have the knowledge to walk you through the tax refund process with ease. We are committed to offering expert and personal service year-round at a location convenient to you.

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Book a tax return appointment

Let us lodge your tax return for you. Our tax accountants have the knowledge to walk you through the tax refund process with ease. We are committed to offering expert and personal service year-round at a location convenient to you.

Book now