Government co-contributions

The Government Co-contribution Scheme applies to personal contributions (post-tax) made by low and middle-income earners.

Under certain conditions, the Government will provide a co-contribution of $1.00 for every $1.00 of personal contributions you make to your superannuation account—up to a maximum of $1,000 (ie this equates to a maximum Government co-contribution of $1,000).

The maximum co-contribution of $1,000 will be available to persons with total incomes* of up to $31,920. If your income is more than $31,920, you can still benefit from super co-contributions. They reduce by just 3.33¢ per dollar of additional income and phase out completely once your total income reaches $61,920.

The table below will give you an idea how much you could gain by topping up your ACSRF super account during the 2011/12 financial year.

If your after-tax super contribution is:   $1,000 $800 $500 $200 And your income* is: Your Government co-contribution will be: $31,920 or less $1,000 $800 $500 $200 $33,920 $933 $800 $500 $200 $37,920 $800 $800 $500 $200 $41,920 $667 $667 $500 $200 $45,920 $533 $533 $500 $200 $49,920 $400 $400 $400 $200 $53,920 $267 $267 $267 $200 $57,920 $133 $133 $133 $133 $61,920 or more $0 $0 $0 $0 These income bands apply from 1 July 2011 to 30 June 2012. The values are only examples and are not exhaustive. *Your total assessable income, plus reportable employer superannuation contributions and reportable fringe benefits.

To be eligible for the co-contribution, you must:

• make eligible personal contributions to a complying superannuation fund or retirement savings account (RSA)
• have total income (assessable income, reportable employer superannuation contributions plus reportable fringe benefits) of less than the higher income threshold
• earn 10% or more of your total income from eligible employment or carrying on a business or a mixture of both
• not hold an eligible temporary resident visa at any time during the year
• lodge an income tax return for the year of income and
• be less than 71 years old at the end of the year of income.

• Contribute post-tax superannuation contribution(s) before the end of the financial year by either:
  • making a payment via BPAY
  • making a lump sum (after tax) contribution by completing the Lump sum payment form
  • speaking to your payroll office about making regular post-tax contributions via your salary.
• Should you have an enterprise agreement in place with your employer giving you extra superannuation support if you contribute to super, it may be to your advantage to consider making some of your superannuation contributions on a post-tax basis. In this case, fortnightly payroll deductions may be more suitable than a lump sum payment.
• Members should seek independent financial advice regarding the make-up of their contributions to superannuation.

Of course, you can still continue to make salary sacrifice (pre-tax) contributions as well, if you so choose.

• The Australian Taxation Office (ATO) will work out your entitlement using information supplied by ACSRF (usually in October) and from your income tax return.
• The co-contribution will be paid directly into your ACSRF superannuation account once the ATO data-matching is completed.
• If you have more than one super find, the ATO determines which fund to send the contribution to.
• To calculate your own personal government co-contribution amount, please refer to the ATO website  .

Spouse contributions do not qualify for the co-contribution, but if your spouse is receiving less than $13,800 in assessable income plus reportable employer superannuation contributions and reportable fringe benefits per annum, you are able to make an after tax contribution to your spouse’s account and then claim a tax offset. The offset is 18% of post-tax spouse contributions of up to $3,000, with a maximum tax offset of $540, if your spouse’s income is $10,800 or less. The offset is reduced as your spouse’s income increases.