If you're under 71 years old at 30 June, earning under $46,920 per annum^, and making after-tax contributions to your super, you could qualify for a government co-contribution. A co-contribution is a Commonwealth government initiative designed to help eligible individuals increase their retirement savings by boosting their super.
If you qualify, the government could match up to 50% of your after-tax super contributions by up to a maximum of $500*, depending on your income and amount you contribute after tax to your super.
For example, if you're on $33,920, and you make an after-tax contribution of $866, the government will automatically contribute $433. If you're on $43,920, and you make an after-tax contribution of $200, the government will make a contribution of $100. And, if you are on less than $31,920 and make an after-tax contribution of $1000, you could receive the maximum contribution of $500.
What this means is that the money you have in your super account will grow even faster and you'll have more to look forward to when it comes time to retire.
The table below shows the maximum government contribution you could receive based on your income and the amount you contribute after tax.
To qualify, you'll need to make an after-tax contribution to your super before the end of June, plus:
Your total income for the year needs to be less than $46,920^.
You'll need to lodge an income tax return with the ATO for the current financial year.
You must be less than 71 years of age at 30 June 2013.
You are not the holder of a temporary visa at any time of the financial year, unless you are a New Zealand citizen or holder of a prescribed visa.
At least 10% of your income must be earned through eligible employment, running a business, or both.
How to receive a government co-contribution
You don't need to apply to receive a government co-contribution. Provided your total income is less than $46,920^ during the financial year, it will automatically be added to your GESB account after you complete your annual tax return.
How to make an after-tax contribution to your super
You can make after-tax contributions by one of the following:
^ Total income for the year includes any reportable fringe benefits and reportable employer super contributions, minus any allowable business deductions. * The government has announced that for the 2012-13 financial year the maximum super co-contribution will be $500, the matching rate will be 50%, the lower income threshold will remain $31,920 and the higher income threshold will be $46,920. These proposed changes are not law because they have not been passed by parliament. For more information, refer to the Australian Taxation Office's Super co-contribution thresholds. ® Registered to BPAY Pty Ltd ABN 69 079 137 518