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 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.
To be eligible for a Co-contribution you also need to:
- be less than 71 years old
- make at least one personal after-tax contribution to your super by 30 June each year
- 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 a 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 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.