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Oct 27 2014

Australian Superannuation Co-contribution scheme


Australian Superannuation Co-contribution scheme

The super co-contribution scheme is designed to assist eligible individuals to save for their retirement.

If you are eligible and make personal super contributions during a financial year, the government will match your contribution with a super co-contribution up to certain limits.

If you are a low or middle-income earner and make personal (after-tax) super contributions to your super fund, the government also makes a contribution (called a co-contribution) up to a maximum amount ($500 in 2013-14).

The amount of government co-contribution you can receive depends on how much you contribute and what your income is.

Changes from 1 July 2012 were as follows:

The maximum co-contribution entitlement was reduced to $500 from $1,000
The matching rate was reduced to 50% from 100%

Co-contribution income thresholds

Year Maximum entitlement Lower income threshold Higher income threshold

2014–15

$500

$34,488

$49,488

2013–14

$500

$33,516

$48,516

If you earn $34,488 or less in the 2014-15 year, and pay $1,000 or more in voluntary personal super contributions, you will receive an extra $500 into your super fund.  This gradually reduces to Zero at an income rate of $49,488.

If you earn $34,488 or less in the 2014-15 year, and pay exacty $500 in voluntary personal super contributions, you will receive an extra $250. (50% of your own contributions).

You don’t need to apply for the co-contribution. If you’re eligible and the fund has your tax file number (TFN) we will pay it to your fund account automatically.
The way your co-contribution is calculated depends on the financial year in which you made your personal super contributions.

The rates in 2003-04 were:

Year Maximum entitlement Lower income threshold Higher income threshold

2003–04

$1,000

$27,500

$40,000






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