Super co-contribution

The super co-contribution is a government incentive to help people on lower incomes boost their retirement savings.
If you earn less than $57,016 per year and make a voluntary after-tax contribution to your super, the government will match your contributions by 50 per cent – up to a maximum of $500.
The amount you receive will depend on your income and how much you contribute to your super.

How much money can I get?
For the current financial year, you need to earn less than $42,016 to be eligible to claim the maximum $500.

The government matches your contributions by 50 per cent, so you would need to contribute $1,000 to get the maximum $500 co-contribution from the government.

The amount of money you can get reduces as your income rises, falling to $0 if you earn $57,016 or more.

For instance, someone earning the average income of $50,980 would be eligible for a co-contribution of $201. That means they would need to contribute $402 to get the benefit.

You can use the Australian Taxation Office’s (ATO) super co-contribution calculator to work out how much you can claim.

Adding even small amounts to your super can add up over time. For instance, Moneysmart’s superannuation calculator estimates a 30-year-old earning the average income with an average super balance of $46,708 could be about $25,275 better off at retirement if they make annual contributions of $402.

Owen & Peach – Accountants & Business Builders