The Federal Government may match 50 cents to every dollar you personally contribute to your super if you’re earning less than $51,021 in the financial year 2016-17.
The co-contribution scheme means that, for every dollar you put into super from your after-tax pay, the government may match it with up to 50 cents for up to $500.
The best part about it? You don’t have to fill in a single form beyond lodging an annual tax return.
If you qualify for the co-contribution, the ATO will do the heavy lifting and ensure payments are made to your super fund automatically.
Governments and policies can change regularly, so consider taking action now while the scheme is still around.Tell me more about super and low income government support
Who can receive a co-contribution?
To be eligible for the scheme, you need to provide us with your tax file number, and make a personal contribution with your after-tax pay.
Then you need to lodge a tax return at the end of the financial year, as you normally would.
If you earned less than $51,021 before tax and at least 10% of that came from employment or self-employment income, you could be eligible to receive a co-contribution.
You also need to be under the age of 71, and have not been a temporary resident of Australia for any part of the financial year.
If you’re over 65, you also need to be employed at least part-time, to make an after-tax contribution.Show me other ways to add money to my super
How much does the scheme add up to?
The maximum amount you could receive is $500, so it’s worth contributing up to $1,000 depending on your income.
For every dollar you earn over $36,021, you will lose 3.33 cents, until it caps out at $51,021.
To keep it simple, we’ve put together a table of how much you can expect to receive based on your salary and contribution amount for the 2016-17 financial year.
|If you earn...||The maximum you could receive is…||By contributing…|
|$36,021 or less||$500||$1000|