You could boost your super by up to $500
If you earn a total income of less than $56,112 in a financial year you may be eligible for a government co-contribution of up to $500.
How does it work?
You can receive up to $0.50 from the government for every $1 you add to your super during this financial year (up to $500 depending on your income and eligibility). Once you lodge your tax return the ATO will automatically assess your eligibility and pay any entitlement into your super account later in the year. It’s as easy as that.
The below table shows you how much you could receive based on your income and contributions for the year:
|
Your 2021/22 salary
(per annum)
|
Contribution
amount required
|
The maximum
you could receive
|
|
$41,112 or less
|
$1000
|
$500
|
|
$44,112
|
$800
|
$400
|
|
$47,112
|
$600
|
$300
|
|
$50,112
|
$400
|
$200
|
|
$53,112
|
$200
|
$100
|
|
$56,112
or more
|
$0
|
$0
|
Source: ATO
Who’s eligible?
Eligibility for the Government co-contribution payment is based on the following criteria:
• You are a permanent Australian resident and under 71 years of age at the end of the financial year
• You earn a total income of less than $56,112 in a financial year
• You earn 10% or more of your total income from employment, running a business, or a combination of both
• 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 your super accounts on 30 June 2022 was below your transfer balance cap. For most people, the transfer balance cap in the 2021/22 financial year is $1.7 million, but if you have used any of your super to start a pension it will be somewhere between $1.6 and $1.7 million. The ATO can tell you the amount of your transfer balance cap.
• You do not contribute more than your non-concessional contribution cap in the 2021/22 financial year
When do you need to pay into your super?
If you haven’t already made a personal (after-tax) super contribution this financial year, you’ll need to ensure you make one before the end of the financial year to be eligible.
Contributions for this financial year must be received by the June 2022 cut-off date to allow time for processing into your account. Payments made after this date may count towards the next financial year.
How do you make a super contribution?
There are three easy ways to pay a personal (after-tax) contribution:
We’re here to help
If you have questions about the government co-contribution and how it could help boost your super, we can help. Contact us on 1800 682 626 between 8:00 am and 8:00 pm AEST Monday to Friday or make an enquiry online.