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Super Co-contribution Reaching More People

Recent changes to the Super Co-contribution mean that from the 2004-05 financial year more individuals may be eligible. These changes include:

  • an increase in the amount of the government's contribution from $1 to as much as $1.50 for every dollar you contribute, and
  • an increase in the income thresholds that determine your maximum co-contribution entitlement.

Under the expanded measure, if an individual earns $28,000 or less in a year and makes personal super contributions of $1000 in a year of income, they could receive the maximum Super Co-contribution of $1500 a year. Those who earn more than $28,000 but less than $58,000 in a year of income will receive a Super Co-contribution calculated on a sliding scale, depending on their income level and the amount of their personal super contribution. The higher income threshold of $58,000 for 2004-05 has been increased from $40,000.

As before, the co-contribution amount is based on the individual's total income (which includes reportable fringe benefits), not their household's, and no application is necessary. Anyone who is eligible simply needs to make personal contributions to their superannuation fund, and lodge an income tax return. The Super Co-contribution amount will be worked out and paid to their superannuation fund. The Tax Office will inform the individual in writing once this has occurred.

Copyright ATO, 31 March 2005.

This article is not a substitute for independent professional advice. We do not warrant the accuracy, completeness or adequacy of the information or material in this article. All information is subject to change without notice. We and each party providing material displayed in this article disclaim liability to all persons or organisations in relation to any action(s) taken on the basis of currency or accuracy of the information or material, or any loss or damage suffered in connection with that information or material. You should make your own enquiries before entering into any transaction on the basis of the information or material in this article. Please ensure you contact us to discuss your particular circumstances and how the information provided applies to your situation.

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