How would you like up to $500 tax-free paid into your super fund by the Government.
To help you save for retirement, the Government has an incentive program that rewards you for making eligible personal contributions to your superannuation fund.
If your total income for the year does not exceed $41,112 in 2021-22 ($39,837 for 2020-21), 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 $56,112 for the 2021-22 year ($54,837 for 2020-21).
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.
- your total income is less than $56,112 for 2021-22 ($54,837 for 2020-21).
- 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 ($1.7 million from 1 July 2021)
- 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 $56,112 (‘total income’) for the 2021-22 year ($54,837 for the 2020-21 year), you then make a non-concessional (after-tax) contribution to your superannuation fund.
- You lodge your tax return.
- 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 (2021-22)?
See our graph below:
|Your total income||Your payment||The benefit|
|$41,112 or less||$1,000||$500|
|$56,112 or more||$1,000||$0|