Add $500 to your super with the co-contribution scheme
Superannuation | 28/05/2020 |
4 min read
The Federal Government’s co-contribution scheme is designed to help you boost your super. It can top-up your balance with up to $500 in additional funds.
With the end of the financial year fast approaching you only have a month left to take advantage of the government initiative for this year. Here’s what you need to know.
How does it work?
If you make additional (after-tax) payments into your super the government will provide a top-up if you meet the eligibility conditions.
For every dollar you contribute (up to $1,000) the government will match it with an additional 50 cents. That means up to $500 in super contributions from the government.
How do I claim my additional co-contribution?
All you have to do is file your annual tax return and the Australian Taxation Office (ATO) will automatically assess your eligibility and pay any entitlement into your super account. It’s as easy as that.
Eligibility for the Government co-contribution is based on the following criteria, once you’ve made your additional contribution:
• You are a permanent resident and under 71 years of age at the end of the financial year
• You earn 10% or more of your total income from employment, running a business, or a combination of both
• You earn a total income of less than $53,564 in the 2019/2020 financial year
• You have not held a temporary resident visa at any time during the year (unless you are a New Zealand resident or hold a prescribed visa)
- The total balance of all of your super accounts was less than $1.6 million on 30 June 2019
- You do not contribute more than your non-concessional contribution cap in the 2019/20 financial year.
Learn more by visiting the ATO website.
How to I make an additional contribution?
If you’re working then your employer should already be making the standard super guarantee contribution of 9.5%. To qualify for the co-contribution scheme you need to make an additional after-tax payment towards your super (salary sacrifice contributions do not count as they are before-tax contributions). That means paying money directly into your super account.
You should have a BPAY number for your super account. Simply use the BPAY details to deposit money into your super account like you would any other payment.
If you’re not sure about your BPAY details simply call the helpline on 1800 682 626.
Anything else I need to know?
To claim your government co-contribution you need to make any after-tax contributions before June 22 and lodge an income tax return for the financial year.
Superannuation is a long-term investment in your future. So make sure you’re taking advantage of government provided incentives. If you have any questions about co-contributions, deadlines, or how we can assist please call the helpline on 1800 682 626.
This information is provided for general information only. It does not take into account your personal objectives, financial situation or needs and should therefore not be taken as personal advice. You should consider whether it is appropriate for you before acting on it and, if necessary, you should seek professional financial advice. Togethr Trustees Pty Ltd ABN64 006 964 049, AFSL246383 ("Togethr") is the trustee of the Equipsuper Superannuation Fund ABN 33 813 823 017 ("Equip" or "The Fund"). Past performance is not an indication of future performance.
Togethr Financial Planning Pty Ltd (“TFP”) (ABN 84 124 491 078, AFSL 455010), trading as Equip Financial Planning, is licensed to provide financial planning services to retail and wholesale clients. TFP is owned by Togethr Holdings Pty Ltd (ABN 11 604 515 791). You can obtain the TFP Financial Services Guide and/or Privacy Statement by contacting our Helpline on 1800 682 626. This is general information only and does not take into account your personal objectives, financial situation or needs and therefore should not be taken as personal advice.