If you make a personal after-tax contribution to your super, the Government may add up to $500 to your account. This is known as a ‘co-contribution’.
Are government co-contributions taxable?
If eligible, the ATO will pay your co-contribution directly into your superannuation account. This payment is tax-free and does not affect your taxable income.
Can spouse contribution and government co-contribution?
Your spouse may want to make an after-tax contribution into their own super account. By doing this, the Government may add up to $500 to their super. To be eligible for the full co-contribution in 2019/20, your spouse needs to contribute $1,000 or more into their super and earn² $38,564, or less.
How much will the government contribute to my super?
How the super co-contribution works in 2021/22. If you earn less than $56,112 per year, the government can contribute up to $500 to your super account in a year. Depending on your income, the government will pay in up to 50 cents for every one dollar you contribute yourself from your after-tax income.
Who is eligible for government co-contribution?
have a total income that’s less than $54,837 in the 2020/21 financial year, or $56,112 in the 2021/22 financial year for at least a part co-contribution (more info on this below) receive 10% or more of your income from eligible employment and/or running a business.
Are co contributions non concessional?
Any Government co-contribution you receive won’t count towards either your after-tax (non-concessional) or before-tax (concessional) contribution caps. However, the amount you contributed to qualify for the co-contribution scheme will count towards your after-tax (non-concessional) contribution cap.
Who is eligible for Government co-contribution?
Can I get Listo and co-contribution?
Example: You’ve received $3,240 in concessional contributions during the financial year. If you’re eligible for a LISTO, you’d receive a contribution of 15% of $3,240 = $486. You don’t have to apply to receive a super co-contribution or LISTO.
Will the Government match my super contributions?
How it works. The Government matches $0.50 for every $1 you contribute to super from your after tax savings up to a maximum of $500. To receive the full $500 you must earn $39,837 or less and make a personal (after-tax) contribution of $1,000 or more.
How do you qualify for Government co contributions?
Is Super CO-contribution still available?
If your total income is equal to or less than $39,837 in the 2020/21 financial year or $41,112 in the 2021/22 financial year and you make after-tax contributions of $1,000 to your super fund, you’ll receive the maximum co-contribution of $500.
What is the government’s co-contribution scheme?
The government’s co-contribution scheme is a great way to give your super a boost. If you’re a low or middle income earner and make personal (after-tax) contributions to your super fund, the government will also make a contribution to your super up to a maximum amount ($500 in 2021-22). This is called a co-contribution.
What is the government co-contribution for 2019-20?
If you earn less than $53,564 per year in the 2019-20 financial year you could be eligible for a government co-contribution of up to $500 when you make a personal contribution with your after-tax pay.
What is a super co-contribution?
Super co-contribution. Super co-contribution Super co-contributions help eligible people boost their retirement savings. If you’re a low or middle-income earner and make personal (after-tax) contributions to your super fund, the government may also make a contribution (called a co-contribution) up to a maximum amount of $500.
How do I receive my government co-contribution?
To be eligible to receive your government co-contribution for this financial year, you’ll need to make a personal contribution to your account. The quickest and easiest way to do this is via BPAY, but you can also EFT your contribution or set up a direct debit.
