Federal Government co-contributions

Will you earn up to $61,920 pa in 2010-2011 and 2011-2012? If you do the Federal Government may match your personal after-tax (non concessional) contribution to super if you meet the eligibility criteria.

The co-contribution is a contribution by the Federal Government to match personal after-tax contributions paid to a superannuation fund.

If your super fund does not hold your TFN, it cannot accept your personal after-tax (non concessional) contributions, which means you will not be eligible to receive any co-contribution.

From 1 July 2007, self-employed people may be eligible for the co-contribution if they meet the eligibility criteria and a tax deduction has not been claimed on the contributions.

Do I need to do anything to claim the co-contribution?

To qualify for a co-contribution, you need to:

How will I know that the Federal Government has paid the co-contribution into my super?

The Australian Taxation Office (ATO) will calculate whether you are entitled to the co-contribution once:

  • the ATO has received your income tax return for the particular financial year, and
  • the superannuation fund has sent the ATO details of any after tax contributions you have made.

If you are eligible to receive a co-contribution, the ATO will generally send the co-contribution to the super fund where you made your after tax contribution. When First State Super receives a co-contribution it will be shown on your next statement.

You can also check your account transactions

Are you eligible for co-contribution?

Generally, the Federal Government co-contribution will be payable for the 2011-2012 financial year if:

  • your total income is less than $61,920, and
  • you make non-concessional contributions to a complying superannuation fund, and
  • you earn at least 10% of your total income from paid employment (even if there is no entitlement to employer superannuation contributions), carrying on a business or both and
  • you lodge an income tax return for the financial year, and
  • you did not hold an eligible temporary resident visa at any time during the financial year, and
  • you are less than 71 years of age at the end of the financial year.

Total income is the total of your assessable income, reportable superannuation contributions and reportable fringe benefits. If you are self-employed, total income is reduced by certain amounts for which you are entitled to a deduction for carrying on a business.