Co-contribution
The super co-contribution is an incentive offered by the Australian Government to encourage you to save for retirement. So, how does it work?
The government will put in $1.50 for each $1 you contribute to super, if your total income is less than $30,342 p.a. in 2008/09. The co-contribution gradually lessens for incomes above $30,342 before cutting out completely for incomes of $60,342 p.a. or more. The maximum co-contribution you can receive is $1500 each year.
Eligibility
To receive the co-contribution, you need tomeet all of the following:
- make personal (after-tax) contributions to your super (not salary sacrificed)
- have total income (assessable income plus reportable fringe benefits) of less than $60,342 before tax in 2008/09
- earn 10% or more of your total income from employment where you are treated as an employee for superannuation guarantee purposes, carrying on a business or a combination of both
- lodge a tax return for the financial year
- be less than 71 years old at the end of the year
- not be a temporary resident
How much you could receive
The table below shows the maximum co-contribution you could receive and the amount you need to contribute to receive it.
| Total income p.a. | Maximum | Personal contribution required |
|---|---|---|
| Up to $30,342 | $1500 | $1000 |
| $35,000 | $1267 | $845 |
| $40,000 | $1017 | $678 |
| $45,000 | $767 | $512 |
| $50,000 | $517 | $345 |
| $55,000 | $267 | $178 |
| $60,000 | $17 | $12 |
| $60,342 or more | 0 | n/a |
