The Government co-contribution was introduced to assist pre-retirees boost their superannuation savings. The Government will make a $1.50 contribution for each $1.00 of eligible personal contributions up to a maximum of $1,500.
What is the maximum co-contribution?
The maximum co-contribution is $1,500 and is available for people with assessable income, plus any reportable fringe benefits of less than $28,980. For people with incomes greater than the lower threshold, the maximum co-contribution is reduced by 5 cents for each dollar above this limit up to an income of $58,980 where it phases out completely.
Who is entitled to the co-contribution?
You may be entitled to receive the co-contribution, if during the year, you fulfil all the following conditions:
• you made an personal contribution to superannuation (salary sacrifice contributions are not eligible)
• you are less than 71 years of age at the end of the financial year when the contribution was made
• 10% or more of your total income is from eligible employment, running a business or a combination of both
• you do not hold an eligible temporary resident visa at any time during the year.
How will the co-contribution be paid?
Your co-contribution entitlement will be determined after you lodge your tax return for the financial year and will normally be paid to the superannuation fund of that received your personal contribution.
The Government co-contribution will be treated as a non-concessional contribution for tax purposes and will not be taxed when ultimately withdrawn or used to commence an income stream.
What amount of co-contribution will you receive?
The amount that you will get depends on your income and the contributions you have made to superannuation.
The following table shows the maximum co-contribution amounts payable for people for a range of incomes that will result from a $1,000 contribution to superannuation.
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