If you qualify for the Commonwealth Government co-contribution it could help grow your super even faster.
The co-contribution scheme rewards you for personally contributing to your super after tax by offering to match a percentage of your contribution.
If your total income is less than $53,564 in a financial year and you make after-tax contributions to your super in the same year, the Commonwealth Government will contribute up to $0.50 for every $1.00 you contribute, to a maximum of $500.
As a Lump Sum Scheme member you can’t make one-off contributions into your account, but because you make fortnightly after-tax member contributions as part of your membership you may still qualify for the co-contribution.
To be eligible for a co-contribution you also need to:
- be less than 71 years old
- earn less than $53,564 in that financial year
- have at least 10% of your total assessable income and reportable fringe benefits
attributable to eligible employment (as determined by the Tax Office)
- not hold an eligible temporary resident visa at any time during the year and
- lodge an Australian income tax return.
To receive the maximum co-contribution of $500 you need to contribute at least $1,000 after tax and earn less than $38,564 per year. The co-contribution you can receive reduces on a sliding scale, and phases out altogether when your income reaches $53,564.
|If your after-tax super contribution is:|
|If your income is:||Your super co-contribution will be:|
|$38,564 or less||$500||$400||$250||$100|
If you receive a co-contribution you'll automatically become a Triple S member. If you don’t already have a Triple S account, one will be created for you and you’ll be charged the standard weekly administration fee of $1.35 on that account. As with all Triple S accounts, you have a choice of investment options for your Triple S balance. Your regular member after-tax contributions will continue to be credited to your Lump Sum Scheme account.
Your co-contribution is calculated by the ATO each year based on your tax return and directly deposited into your Triple S Co-contribution Account.
Please note: Any contributions you make to your Lump Sum account, including any rollovers, will not count towards the First Home Super Saver Scheme (FHSSS). The Lump Sum Scheme is an untaxed fund and is therefore specifically excluded under Commonwealth rules.