If you qualify for the Commonwealth Government Co-contribution it could help grow your super even faster. The super co-contribution is only available to low and middle income earners (i.e. We put $1000 into her super account (Hostplus) during FY19-20 expecting the super co-contribution for $500. If your total super balance is less than $500,000 at 30 June, you can ‘carry forward’ any concessional contributions over a rolling five-year period. Any co-contribution that’s owed to you will usually be deposited into your super account. The lower your income the higher your entitlement. If your total income 2 in the 2016/17 financial year is less than $36,021 1 p.a. What is the Government’s co-contribution to super? You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products). The ATO determines if you have met the criteria to receive a co-contribution. Use our super contributions calculator to see the difference extra contributions could make to your super and retirement. The Government co-contribution is an initiative to help eligible low to middle income earners boost their retirement savings. Receive a co-contribution of up to $500. Eligibility. Super co-contribution. If your co-contribution is less than $20, we will pay the minimum amount of $20. The amount you receive will depend on how much … If your total income is less than $53,564 in a financial year and you make after-tax contributions to your super in the same year, the Commonwealth Government will contribute up to $0.50 for every $1.00 you contribute, to a maximum of $500. From ATO website "When you lodge your tax return, we will work out if you're eligible. How Much Super Co-Contribution Will I Get? It is automatically calculated and paid by the Tax Office based on information shown in the super fund’s income tax return, which shows the member’s name, tax file number and with the personal super contributions entered at the correct tax return label. Replies 4. Super co-contribution scheme – a great initiative to boost your retirement savings. For this test, your total income is not reduced by your allowable business deductions. To satisfy this test, 10% or more of your total income must come from either: Amounts from these sources are referred to as eligible income amounts. What this means is depending on the amount of income you earn each year, the government may add to your super balance when you make a voluntary after-tax contribution. If you have questions about eligibility for the super co-contribution, ask our. A payment made by the Government to the super fund of a low or middle income earner to reward them for making personal contributions to super. If you earn less than $37,697, the Australian Government will contribute $0.50 for every $1.00 of after-tax super contribution you make, up to a maximum of $500. If your total income is between the two thresholds, your maximum entitlement will reduce progressively as your income rises. Once total income exceeds $37,697, the co-contribution decreases by 3.333 cents in every dollar paid into super. You can use the Super Co-Contribution calculator (available on ASIC’s MoneySmart website) to find out how much you may be eligible for. Super Co-Contribution 2014 FY. Watch Queue Queue Make sure you have the information for the right year before making decisions based on that information. Often referred to as the 'Government co-contribution', or simply 'co-contributions', this is an additional contribution paid by the Australian Government to you as a reward for making an after tax personal contribution to your super. Views 573. For the purpose of this test your total income for the financial year is: If you are carrying on a business, you may have a high turnover but still be eligible for the super co-contribution due to your allowable business deductions. Enthusiast. If you are eligible and make personal after-tax (non-concessional) superannuation contributions, you will receive a bonus contribution to your super from the Government. For the 2019-2020 income year, the two thresholds are $38,564 (lower) and $53,564 (upper). Here’s how it works. Super co-contributions help eligible people boost their retirement savings. General Advice Warning. If you earn less than $37,000 per year, the Government could refund the tax you pay on any before-tax contributions up to a maximum of $500. If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take. If you’re thinking about making extra contributions to your super, our superannuation calculator can also help you decide between before-tax contributions such as salary sacrifice or after-tax contributions. Enthusiast. You may receive a lower amount if you contribute less than $1,000 and/or earn between $39,837 and $54,837. The Australian Taxation Office will deposit a co-contribution directly into your super account in the following financial year. You will not receive any co-contribution if your income is equal to or greater than the higher threshold. Often referred to as the 'Government co-contribution', or simply 'co-contributions', this is an additional contribution paid by the Australian Government to you as a reward for making an after tax personal contribution to your super. a higher threshold ($53,564 for 2019–20). However, we changed our super account to AustralianSuper after we deposited the $1000 to the Hostplus account in FY19-20. The co-contribution scheme rewards you for personally contributing to your super after tax by offering to match a percentage of your contribution. Super Co-Contribution Options Menu Options. taxable income less than $49,488) who have made after tax personal contributions to their superannuation fund. If you make a Non Concessional Contribution of $800, you will receive a Government Super Co-Contribution of $400. Setup mygov and link to ATO online services, Amounts you don't need to include as income, Occupation and industry specific income and work-related expenses, Financial difficulties and serious hardship, Instalment notices for GST and PAYG instalments, Your obligations to workers and independent contractors, Encouraging NFP participation in the tax system, Australian Charities and Not-for-profits Commission, Departing Australia Superannuation Payment, Small Business Superannuation Clearing House, Annual report and other reporting to Parliament, Complying with procurement policy and legislation, Eligibility for the super co-contribution, Government super contribution labels in your tax return, Aboriginal and Torres Strait Islander people. Super Co-Contribution Options Menu Options. Following up from "The most boring gift ever" video, Rob highlights the key eligibility criteria for super co-contributions. Effectively, the government is donating money when a person makes a non-concessional (after tax) contribution to their super fund and their income is less than $51,813 (for 2017-18). Generally, income that is related to employment or business is eligible income – for example: The following types of income are not eligible income for super co-contribution purposes: We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. The Government’s super co-contribution is an initiative to help you save for retirement. If you are eligible and make personal after-tax (non-concessional) superannuation contributions, you will receive a bonus contribution to your super from the Government. Grow your super. If your total income is less than $53,564 in a financial year and you make after-tax contributions to your super in the same year, the Commonwealth Government will contribute up to $0.50 for every $1.00 you contribute, to a maximum of $500. If your total super balance is less than $500,000 at 30 June, you can ‘carry forward’ any concessional contributions over a rolling five-year period. Under the scheme, the co-contribution is a payment the Government makes to your super if you are in the low to middle income threshold and make voluntary after-tax contributions to your super. After tax contributions means the taxpayers are not claiming a tax deduction for their contributions. Co-Contribution scheme info. Make an after-tax contribution up to $1000 within a financial year; And the Commonwealth Government will contribute $0.50 for every $1 you contribute! Some of the information on this website applies to a specific financial year. 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