Could you be getting an extra $1,500 each year?
Building your super with personal contributions has always been a great way to
save for the future. With the Federal Government's co-contribution, it makes more
sense than ever and could put up to an extra $1,500 a year into your account!
The co-contribution was introduced on 1 July 2003 to boost superannuation savings
for low income earners. If your income* is less than $28,000 a year and you make
personal contributions to your super, you could receive an extra $1,500 super
contribution from the Government.
The co-contribution applies to people with incomes* up to $58,000, with the
amount of co-contribution reducing as income increases.
*For the purposes of the co-contribution, income is defined as assessable income
plus reportable fringe benefits.
What must you do to receive the co-contribution?
Certain conditions apply. If you meet all of the following criteria, you will most
likely be eligible for the co-contribution. In the financial year, you must:
- Make personal after-tax contributions to your superannuation fund (note that salary sacrifice contributions are not eligible).
- Have an income less than $58,000
- Receive 10% or more of your income from eligible employment
- Be a permanent Australian resident
- Lodge an income tax return in respect of the financial year
- Be less than 71 years of age at the end of the financial year
Government Adds to Co-Contribution
Treasurer Peter Costello has announced the Federal Government will pay a one-off additional co-contribution into the superannuation accounts of people who made eligible contributions in the 2005-06 income year.
Announced in the Federal Budget speech on 8 May 2007, the payment will double the co-contribution paid in respect of that year and contribute an additional $1.1 billion to the retirement savings of Australians.
If a person was eligible for a co-contribution of $1,500 in respect of the 2005-06 year, they will now receive an extra co-contribution of $1,500, making the total co-contribution payments in respect of that year $3,000.
In the majority of cases the additional co-contribution will be paid to superannuation funds before June 30, 2007.
The AustSafe Super website will be updated with more information as soon as it becomes available. In the mean time, if you have other queries or questions, contact the AustSafe Super Customer Service Centre on 1300 131 293.