Co-Contributions

 

 

What is the Super Co-Contribution

The Super Co-Contribution is an Australian Government initiative to assist you to save for your retirement whereby if your income is within predetermined thresholds and you make a personal super contribution in a financial year, the Government will match your contribution with a co-contribution up to certain limits.

 

 

Eligibility

To be eligible for a co-contribution, the following criteria must be satisfied: 

1. You make a personal contribution by 30 June of that income year to your SMSF.
2. You do not claim a deduction in your personal income tax return for the contribution.
3. Your total income must be below the higher income threshold.

   Income Year	Maximum Entitlement	Lower Income Threshold	Higher Income Threshold
   2021-22	$500	$41,112	$56,112
   2020-21	$500	$39,837	$54,837
   2019-20	$500	$38,564	$53,564

4. 10% or more of your total income must be from running a business, eligible employment or a combination.
5. You are less than 71 years old at the end of the income year.
6. You do not hold an eligible temporary resident visa at any time during the income year. 
7. Your Total Superannuation Balance must be less than the general Transfer Balance Cap on 30 June of the previous Financial Year, and

Income Year	General Transfer Balance Cap
2021-22	$1.7 million
2020-21	$1.6 million
2019-20	$1.6 million

8. You must not have exceeded your Non Concessional Contributions cap in the relevant Financial Year.

You must meet all these requirements to be eligible.

 

 

How much does the Government Contribute?

Based on current thresholds, if your total annual income is $41,112 (2022 financial year), the Government will pay $0.50 for every dollar you personally contribute to your SMSF.

 

 

Reduction in Co-Contribution Payment

For earnings between $41,112 and $56,112 (2022 financial year), the maximum co-contribution is reduced by 3.33 cents for every dollar earned over the minimum threshold until it cuts out. The lower income threshold will be increased to keep pace with wages, with the upper threshold increased accordingly.

 

 

Applying for the Government Co-Contribution

No Application is needed for the Government Co-Contribution. All you need to do if you are eligible is make a personal superannuation contribution to your SMSF and lodge your personal income tax return. It is that simple and there are no additional forms. ESUPERFUND will determine the amount of the contribution made by you when completing your SMSF annual accounts (noting the contribution will show up in your SMSF Bank Account). The Tax Office will in turn use the information on your income tax return and the information provided by ESUPERFUND on your SMSF tax return to work out whether you are eligible. If you are, they will automatically calculate the co-contribution amount and deposit your entitlement into your SMSF or send you a cheque. The ATO will send you a letter to confirm payment once it has been paid.