Superannuation - Contributions

Superannuation Co-contribution  

Financial Dynamics Client Manager, Darren Wearne says, "Don’t forget to make your personal superannuation contributions before the end of each financial year."

At the beginning of each new financial year, it’s time to make sure that you have a plan in place to take advantage of the Government’s superannuation co-contribution.

The superannuation co-contribution is an Australian Government initiative to help low to middle income earners save for their retirement. If you are eligible and make personal superannuation contributions to a complying superannuation fund or retirement savings account, the Government will match your personal super contribution with a co-contribution up to certain limits.

2009 Financial Year

• If your total income for tax purposes is $30,342 or less a year, the Government will match your personal super contributions of up to $1,000 a year. For every dollar you put into your super the Government will put in a $1.50 up to $1,500;
• When your income is more than $30,342 but less than $60,342 a year, your super co-contribution will be reduced by 5c for every dollar over $30,342 and will also depend on how much you personally contribute.For example, if your income is $32,500 a year and you make personal super contributions of $1,000 during that year, you will be entitled to a super co-contribution of $1,392;
• From 1 July 2007, eligible self employed persons can now also receive the Government co-contribution.

Table  

2010 Financial Year

For the 2010 financial year, the Federal Government has reduced the superannuation co-contribution maximum payment from $1,500 to $1,000.  

If your total income for tax purposes is $31,920 or less a year, the Government will match your personal super contributions of up to $1,000 a year. For every dollar you put into your super the Government will put in a $1.00 up to $1,000;

• When your income is more than $31,920 but less than $61,920 a year, your super co-contribution will be reduced by 3.333c for every dollar over $31,920; 

Table

If you are eligible, the Tax Office will automatically calculate the co-contribution amount and deposit it into your superannuation account after:

• you have lodged your income tax return,
• your superannuation fund has lodged a member contributions statement (MCS) for you, and
• the Tax Office has received any additional information required.

Make sure you pay your personal contributions to your superannuation fund before 30th June each year. Your superannuation fund will be able to tell you the best method to make the contribution. Most funds offer different options for payments including BPAY, direct debit or through your bank account.

Tel: 02 4421 2345Fax: 02 4421 2340