Superannuation

What is the government co-contribution?

The government co-contribution is designed to give Australians more incentive to save for retirement, by turning every $1 invested in super into as much as $2.50.

The benefit is that every dollar you put into super works harder.

Am I eligible?

It depends on how much you earn. The co-contribution works on a sliding scale of earnings, as shown on this table.

Total assessable income plus reportable fringe benefits	Personal (after-tax) contribution required to obtain maximum co-contribution	Maximum co-contribution
$30,342^ or less	$1,000	$1,500
$35,000	$845	$1,267
$40,000	$678	$1,017
$45,000	$511	$767
$50,000	$345	$517
$55,000	$178	$267
$60,000	$11	$20
$60,342^ or more	Not eligible	Not eligible

^ These amounts are indexed

If you are eligible, the Australian Tax Office (ATO) will automatically match your super fund record with your tax return at the end of the financial year. Any co-contribution will then be paid directly into your superannuation fund.

To qualify for the co-contribution, you need to:

Be an Australian resident.
Receive 10% or more of your total income (assessable income and reportable fringe benefits) from employment, carrying on a business, or a combination of both.
Have total income from all sources of less than $58,980 in the 2007-2008 financial year.
Lodge an income tax return for the year.
Be less than 71 years old at the end of the income year and be an Australian resident.
Not have held an eligible temporary visa at any time in the year.
Make personal, after-tax contributions to a complying super fund.

It’s important to note that from 1 July 2007 the co-contribution scheme was extended to people who are self-employed.

Additional benefits

The co-contribution counts as a non-concessional contribution and is added to the tax-free component of your super account, which means it will NOT be: