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.
As a Pension 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.
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 $56,112 in the 2021/22 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.
To be eligible for a co-contribution you must:
- have made one or more eligible personal super contributions to your super account during the financial year
- pass the two income tests (income threshold and 10% eligible income tests)
- be less than 71 years old at the end of the financial year
- not hold a temporary visa at any time during the financial year (unless you are a New Zealand citizen or it was a prescribed visa)
- lodge your tax return for the relevant financial year
- have a total superannuation balance less than the general transfer balance cap at the end of 30 June of the previous financial year
- not have contributed more than your non-concessional contributions cap.
To receive the maximum co-contribution of $500 you need to contribute at least $1,000 after tax and earn less than $41,112 a year. The co-contribution you can receive reduces on a sliding scale, and phases out altogether when your income reaches $56,112
|If your after-tax super contribution is:|
|If your income is:||Your super Co-contribution will be:|
|$41,112 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, plus 0.05% of your account balance, capped at $325 p.a. calculated and deducted monthly. Refer to the Triple S Reference Guide for more details. 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 Pension 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.