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. http://ato.gov.au/superprofessionals/content.asp?doc=/content/56618.htm