Co-contribution 2016/17

Let the Government top up your super in the 2016/2017 financial year by taking advantage of the co-contribution scheme, where you could be eligible to receive up to $500 tax-free.

If you’re earning less than $51,021 a year and you make an after-tax, voluntary contribution to your super, you could be eligible to receive a boost from the Government under its co-contribution scheme. In fact, if you are eligible, the Government could contribute up to $500 a year into your super account.

WHO IS ELIGIBLE FOR THE CO-CONTRIBUTION?

You may be entitled to a Government co-contribution if you fit the following criteria: > you made voluntary, after-tax contributions to a complying super fund or a retirement savings account (RSA) during the financial year,

> your total annual income was less than $51,021,

> you are under 71 years of age at the end of the financial year, > you lodged an income tax return for the financial year,

> you have not held an eligible temporary resident visa at any time during the financial year,

> you earned 10 per cent or more of your total income from running a business if you are self-employed, or from eligible employment, or a combination of both.

HOW MUCH WILL I BE ENTITLED TO?

The Government could pay you a reward of up to 50 cents for every dollar of your own money you pay into your super account.

If you are earning less than $36,021 per year, you could be entitled to the Government’s maximum co-contribution of $500. If your income is above $36,021 the maximum co-contribution will reduce for each additional dollar of income, and phase out completely at $51,021 total income.

CAN I MAKE SMALLER PAYMENTS AND STILL BE ELIGIBLE?

Yes. You can make smaller payments throughout the year and still be eligible for a co-contribution.

For example, if you are earning up to $36,021 per annum and you pay $20 a week into your super fund, this will add up to a total of $1,040 over the year, which means you could be entitled to the maximum $500 boost from the Government.

Even if you don’t contribute the full amount needed to receive the maximum contribution from the Government, you can still take advantage of the scheme. However, just remember that for every $1 less than the full amount needed to receive the maximum co-contribution, the Government’s contribution drops by 50 cents.

It’s also important to know the contribution you pay into your super needs to be from your after-tax money so does not include the super paid in by your employer, nor any payments you make to your super through salary sacrificing.

For more information on working out the amount of co-contribution you may be entitled to, use the ASIC Money Smart calculator at moneysmart.gov.au