The Government Co-Contribution Scheme – Money for Nothing?
If you are an individual who earns under $58,000 and you make an after-tax contribution to your superannuation account, you may be eligible for the government co-contribution, which could be up to $1,500 this financial year.
To be eligible you must be under 71 years of age and working full-time, part-time or casually and be in receipt of Superannuation Guarantee contributions. This includes self-employed people, who operate their own business through a company, which pays them a salary or wages.
The following table gives some examples:-
| If your Personal Super Contribution is:- |
$1,000 |
$800 |
$500 |
$200 |
| And your Income is |
Your Super Co-contribution will be:- |
|
|
|
| $28,000 or less |
$1,500 |
$1,200 |
$750 |
$300 |
| $30,000 |
$1,400 |
$1,200 |
$750 |
$300 |
| $40,000 |
$900 |
$900 |
$750 |
$300 |
| $50,000 |
$400 |
$400 |
$400 |
$300 |
| $56,000 |
$100 |
$100 |
$100 |
$100 |
You are not required to complete any forms to participate in the co-contribution scheme. The Australian Taxation Office will be advised of your after-tax contribution and your eligibility will be assessed when you lodge your tax return for the financial year end.
By agreeing to lock away some of your savings for your retirement, the government will more than double most peoples money – some would say “that’s a no-brainer”. At least think about it and if in doubt ask your adviser.
