Co-Contributions

Jump Start Your Super

You may be eligible for the Australian Government's co-contribution initiative. This is a great way to boost your retirement savings. For every $1.00 of your personal superannuation contribution the government will contribute $1.00, up to a maximum of $1,000.

Do you qualify?

To qualify in the 2009/2010 tax year, you will need:

• to make a personal contribution out of after-tax salary to a complying superannuation fund or a Retirement savings Account (RSA)
• to have an "assessable income" plus "reportable fringe benefits" of less than $61,920
• to lodge an income tax return for the year of income
• not to hold an eligible temporary resident visa at any time during the year
• to be less than 71 years old at the end of the year of income.

How much could you get?

The maximum co-contribution of $1,000 will apply to earnings of $31,920 or less. The co-contribution cuts out when your income reaches $61,920.

From 2012, the maximum co-contribution rate will increase each year, reaching $1,500 by 2015 as set out in the table below.

The thresholds will be subject to indexation, however under present legislation the maximum co-contribution is fixed at $1,000 for this financial year.

How do you claim?

It is easy. You do not even have to apply for the co-contribution. The Tax Office will calculate your entitlement using information from your superannuation fund and tax return.

If you make a voluntary contribution to AESuper that is eligible for a co-contribution, the government will make the co-contribution in the following tax year as the amount of the co-contribution is based on information in your tax return. This means that if you make an eligible voluntary contribution in the 2009/2010 tax year, the Government will make the co-contributions after you lodge your 2009/2010 tax return. So you should lodge your tax return as soon as you can.

Other considerations

Like your personal contributions, co-contributions will be treated as non-concessional contribution for taxation purposes. This means that they will not be subject to any taxation when paid to the fund, and will not be taxed as an end benefit. The earnings on co-contributions will receive concessional tax treatment like any other earnings in your superannuation fund.

Personal contributions and co-contributions must be preserved in the fund, which means they can generally be accessed only when you reach your preservation age, or satisfy other grounds for releasing your benefit.

Therefore, if you earn less than $61,920 this tax year, you have a great opportunity to increase your superannuation savings with some welcome help from the government!

For more information

A fact sheet is also available through the ATO's website.

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Professional Associations Superannuation Limited (PASL) (ABN 14 056 917 303 RSE L0000352 AFSL 222590) as Trustee of Professional Associations Superannuation Fund (PASF) (ABN 78 984 178 687 RSE R1000429). Australian Enterprise Super is a Division of PASF.