If you are a low or middle-income earner who has made an after-tax contribution to your super, you may be eligible for a co-contribution by the government of up to $500.
Am I eligible for the government co-contribution scheme?
To qualify, you must:
- have made one or more after-tax (non-concessional) contribution to your super during the financial year.
- not have claimed a tax deduction on the contribution.
- have a total income that’s less than $54,837 for the 2020/2021 financial year.
- receive 10% or more of your income from eligible employment and/or carrying on a business.
- be 70 years old or younger at the end of the financial year.
- be a permanent resident or citizen of Australia.
- lodge a tax return.
- have a total super balance of less than the transfer balance cap ($1.6 million for the 2020/2021 financial year) as at 30 June of the previous financial year.
- have not exceeded the non-concessional contributions cap.
If you’re between the ages of 67 and 70, you must fulfill a work test that shows you were employed for at least 40 hours over a consecutive 30-day period before you can make voluntary super contributions.
You do not need to apply for the co-contribution as the ATO would work out if you are eligible. Find out the eligibility criteria from the ATO website.
How much co-contribution will I receive?
If your total income is equal to or less than $39,837 for the 2020/2021 financial year and you make one or several contributions amounting to $1,000 to your super account, the Government will match your eligible super contributions by 50 cents per dollar, up to a maximum co-contribution of $500 per year.
If your total income is between $39,837 and $54,837 during the 2020/2021 financial year, your maximum entitlement will reduce progressively as your income rises.
If your co-contribution is less than $20, the ATO will pay the minimum of $20.
You can use the ATO’s super co-contribution calculator to estimate your co-contribution entitlement and eligibility.
How do I make a contribution?
Log in to your account. Under the ‘My Account’ tab, navigate to ‘Balance statement’ followed by ‘Make a contribution’. From there, you can choose to make a payment via direct debit, BPay or a cheque.
If you make a payment via BPay or a cheque, please also complete the Lump Sum Contribution form to let us know which investment options you’d like the money to be placed in.
You can also speak to your employer to request that they make regular after-tax contributions on your behalf.
Any advice contained in this document is of a general nature only, and does not take into account your personal objectives, financial situation or needs. Prior to acting on any information in this document, you need to take into account your own financial circumstances, consider the Product Disclosure Statement for any product you are considering, and seek independent financial advice if you are unsure of what action to take.