Government co-contribution

 

How much could you boost your super?
How much am I entitled to?
Am I eligible?
How to make a contribution

Do you earn under $61,920 per year?

What you need to do to get the co-contribution
 

1. Make a personal after-tax contribution no later than 30 June.
2. If you're eligible, the government will calculate your co-contribution based on your tax return and information from your super fund.
3. The government will pay the money into your super account. Generally, this doesn't happen until around November/December and only after you've lodged your tax return.

Why does the government want to make a co-contribution to my super?

The government is concerned that people who earn below $61,250 are the least likely to top up their super but the most likely to need it when they finish work. The government co-contribution is both a subsidy and an incentive for you to invest for your own future.

How it works

If you earn under $61,920, meet the eligibility criteria and make a personal after-tax super contribution, the government will add money to your super account - up to $1.00 for every $1.00 you put in. They'll contribute up to $1,000 per year, depending upon your income.

Remember to allow a few days for REST to receive your contribution, particularly when using BPAY®. For you to be eligible, we need to have your contribution by 30 June.

The government has passed the legislation to keep the current co-contribution rate of 100%. The current co-contribution rate of 100% ($1 for $1) will become permanent and will not increase from 1 July 2012 (as announced in last year's budget). Indexation on lower and upper threshold levels ($31,920 lower level and $61,920 upper level) have been frozen for 2 years.

This graph shows how much you might benefit from the government co-contribution.

 

*Assumptions: Current salary: $35,000, increasing with inflation.  9% superannuation guarantee on salary. Personal after-tax contribution: $1.50 per day, attracting government co-contribution of $1 for $1 over the projection period. Employer contributions are subject to tax at 15%. Investment earnings: 7% pa net of fees and tax, which is the expected long term compound average return for a balanced fund exposed to 70% growth assets. Inflation at 3.5%, which is 1% above the mid-point of the Reserve Bank of Australia’s target for consumer price inflation. The starting point for the projection is 1 July 2010. Results are shown in today's dollars by discounting at 3.5% p.a. Source: Rice Warner Actuaries..

How much am I entitled to?

And how much do I need to contribute to receive my maximum subsidy?

Basic eligibility criteria

You will be eligible for the co-contribution in a year of income if:

• you make a personal after-tax contribution to a complying superannuation fund like REST

• your total income is less than $61,920. Your total income includes assessable income plus reportable fringe benefits – and salary sacrifice payment - including any reduction for deductions for carrying on a business, which may be different to your taxable income

• 10% or more of your total income is from eligible employment, carrying on a business or a combination of both

• you do not hold an eligible temporary resident visa at any time during the year

• you have supplied us with your TFN

• you lodge an income tax return for the year of income and

• you are less than 71 years old at the end of the year of income.
  
   

BPAY®

Both the biller code and reference number are in MemberAccess or on your member card.

 

Direct debit

Organise regular payments from your bank account or financial institution.

 

Payroll deduction (after-tax)

Ask your employer to make regular payments from your after-tax pay.