The federal government’s co-contribution scheme is a great way to give your super a boost.
Under the scheme for the 2011/2012 financial year, the government will match your after-tax super contribution dollar for dollar up to $1,000 depending on your level of income.
There are, of course, some criteria for eligibility to receive this $1,000 co-contribution payment. These include:
- Additional contributions up to $1,000 must be made from your take-home (after tax) pay, in addition to the 9 per cent superannuation guarantee that your employer pays on your behalf.
- You must be under 71 years old at the end of the financial year.
- Your total income for the financial year is less than the specified threshold – currently $61,920.
There are two super co-contribution thresholds - a lower income threshold and a higher income threshold.
If you are eligible for the super co-contribution and your total income is $31,920 or less, you can receive the maximum super co-contribution amount of $1,000.
If your income is between $31,921 and $61,920 the co-contribution amount you receive will reduce on a sliding scale, the higher your income is.
Once your income is more than $61,920 you are no longer eligible for the co-contribution.
These rules will change in 2012/13, so for full details visit the ATO website, or contact your fund.
While you’re earning less than the specified threshold try and boost your super as much as you can each year by taking advantage of the co-contribution scheme. You are only eligible for it once a year, but you are able to receive it each financial year, provided you earn under the stated threshold for that year and make a personal after-tax contribution in that year.
top