Skip to content Skip to Access My Account

Site breadcrumbs

Latest News

Boost your super with a government co-contribution

14 Jun 2011

If you earn less than $61,920 this financial year and make after-tax contributions to your super, you could be eligible for a co-contribution from the government.

Yes, that’s right. In an effort to help boost the retirement savings of low-middle income Australians the government will match, dollar-for-dollar all voluntary contributions you make to your super fund (of course there are limits and thresholds that apply).

And the best bit is there are no forms to fill in or any messy paperwork – all you have to do is make your contributions and lodge your tax return. If you qualify, the government will automatically pay your co-contribution into your super account. It really couldn’t be simpler.

Is there a catch?

No. As long as you meet the eligibility criteria, you’re entitled to a co-contribution. The co-contribution is also available to the self-employed. Plus it doesn’t matter when you make your contributions during the financial year or how much you contribute – you can put away $20 a week or make a one-off contribution. Just remember that the co-contribution is calculated on the contributions you make in a financial year, not a calendar year.

Am I eligible for a co-contribution?

To qualify for a co-contribution this year you must, for the year ending 30 June 2011:

  • Make at least one voluntary after-tax contribution to your super;
  • Earn less than $61,920 (this includes your income, your reportable fringe benefits and your reportable employer  super contributions);
  • Earn at least 10% of your total income from employment, running a business or a combination of both;
  • Be aged less than 71 years at 30 June 2011;
  • Be a permanent resident of Australia for the entire financial year, and
  • Lodge a tax return.

How much am I entitled to?

The amount of the co-contribution you receive will depend on your income and the amount of personal contributions you make. The ATO has a co-contribution calculator you can use or you can use the table below as a guide to see how much of a contribution you’re entitled to.

And like your personal contributions, your co-contribution is not taxed when it is paid into your account or when you withdraw it as part of your retirement benefit.

  If your personal after-tax super contribution is:
$1,000 $800 $500 $200
And your income is Then your super con-contribution will be
Less than $31,920 $1,000 $800 $500 $200
$35,920 $867 $800 $500 $200
$40,920 $700 $700 $500 $200
$45,920 $533 $533 $500 $200
$50,920 $367 $367 $367 $200
$55,920 $200 $200 $200 $200
$61,920 $0 $0 $0 $0

We can’t accept voluntary contributions without your tax file number.

If you haven’t provided us with your TFN, we won’t be able to accept voluntary contributions on your behalf. This means you could miss out on a co-contribution.

It’s not too late!

With the end of the financial year fast approaching, there’s not much time left to take advantage of a government co-contribution. If you haven’t already, make sure you make a voluntary personal contribution to your super account before 30 June 2011. After all we are talking about free money – what are you waiting for?

Please note that taxation legislation is subject to change and that the details included in this article are current as at June 2011.
Prime Super is a not for profit Industry Superannuation Fund. This article contains general information only and does not take account of your personal circumstances. You should obtain personal advice where appropriate. Prime Super (ABN 60 562 335 823) is issued by Prime Super Pty Ltd (ABN 81 067 241 016, AFSL 219723). A Product Disclosure Statement is available from the issuer by phoning 1800 675 839.
Boost your super with a government co-contribution

Important Notice

The advice contained on the Prime Super website does not take into account your particular objectives, needs or financial situation. Before making a decision regarding the acquisition or disposal of a financial product, you should assess whether the advice is appropriate to your objectives, needs or financial situation. You may wish to make this assessment yourself or seek the help of an adviser. Prime Super takes no responsibility for you acting on the information provided. Any decision that you make is at your own risk. Before acquiring a financial product you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product.

Issued by the Trustee: Prime Super Pty Ltd ABN 81 067 241 016 AFSL No. 219723 RSE Licence No. L0000277 Prime Super ABN 60 562 335 823; RN 1000276