If your income is less than $53,564 for the 2019-20 financial year, you may be eligible to receive a contribution from the government when you make contributions to your super from your after-tax pay. This is called a co-contribution.
To get the maximum co-contribution of $500 each year, you’d need to add $1,000 to your super from your after-tax pay and earn under $38,564 (for the 2019-20 financial year). The co-contribution amount decreases as your income increases until it cuts out for anyone earning over $53,564 each year.
You’re eligible for a co-contribution if you:
If your income is near the threshold, a combination of before-tax income and after-tax income may suit you better. Try MoneySmart's Super contributions optimiser to explore.
You can’t get a co-contribution for contributions you claim as a tax deduction or make through salary sacrifice arrangements.
How much you’ll receive depends on your income. The table below will help you work it out for the 2019-20:
|Your income||Your estimated co-contribution|
|$38,564 or less||$500||$400||$250||$100|
|$53,564 or more||$0||$0||$0||$0|
There's no need to apply or do any extra paperwork. If you're eligible, the government will pay the co-contribution directly into your super account after you've lodged your tax return for the financial year you made the contribution in.
For example, if you add to your super before 30 June 2020, you'll receive your government co-contribution after you've lodged your 2019-20 tax return.