The super co-contribution is a helping hand from the Australian Government to assist eligible individuals to save for their retirement. If you are eligible and make personal super contributions, the government will match your contribution with a super co-contribution up to certain limits.
About the super co-contribution
The super co-contribution is a government measure to boost super savings. If you are a low or middle income earner, you may be able to receive the super co-contribution from the government by making eligible personal superannuation contributions to your fund. You do not have to contribute the full $1,000 to be eligible - any amount up to $1,000 will attract the super co-contribution.
The co-contribution:
- must be preserved in a super fund or retirement savings account (RSA) - it can only be accessed when other preserved amounts can be accessed
- is not included as income in your tax return
- will not be subject to tax when paid to the fund or RSA provider
- will not be taxed when received as a benefit.
Prior to 1 July 2007, only individuals who received income from employment-related activities were eligible to receive the co-contribution. However, from 1 July 2007, the co-contribution initiative has been extended to include self-employed persons.
The maximum co-contribution payable and the way we work out the amount of co-contribution we pay depends on the financial year in which you made your eligible personal super contributions.
Co-contribution income thresholds
Year |
Maximum entitlement |
Lower income threshold |
Higher income threshold |
2010-11 |
$1,000 |
$31,920 |
$61,920 |
See the note below. The government has announced the 2010-11 co-contribution rate will be maintained at the same rate as for the 2009-10 year. |
2009-10 |
$1,000 |
$31,920 |
$61,920 |
2008-09 |
$1,500 |
$30,342 |
$60,342 |
2007-08 |
$1,500 |
$28,980 |
$58,980 |
2006-07 |
$1,500 |
$28,000 |
$58,000 |
2005-06 |
$1,500 |
$28,000 |
$58,000 |
2004-05 |
$1,500 |
$28,000 |
$58,000 |
2003-04 |
$1,000 |
$27,500 |
$40,000 |
In accordance with section 10A of the Superannuation (Government Co-contributions for Low Income Earners) Act 2003 , the lower income threshold is indexed in line with AWOTE each income year. The new indexed amount is generally available each May.
Disclaimer: Please seek out professional advice and refer to the ATO for up to date information on any financial matters. Further information available on the ATO website. This information is an extract from the ATO website as at 27/5/10. No responsibility is taken for the accuracy of this information by My Local Guide.
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Feature: Superannuation Co-Contributions from the Government