Superannuation - What is the Government Co-Contribution?

The Government Co-contribution for low income employees, which applies from 2003/04, is provided by the Superannuation (Government Co-contribution for Low Income Earners) Act 2003 and associated regulations. The co-contribution effectively replaces the tax rebate to which a low income employee may have been entitled before 2003/04.

How the scheme works
The government may contribute towards the superannuation savings of eligible low income earners where they make eligible personal contributions. If a person's assessable income (plus reportable fringe benefits) is below $28,980 (2007/08FY), they may be eligible to receive a co-contribution amount of up to $1,500 from the Government if they make a personal, non-concessional contribution of at least $1,000 into superannuation. (The maximum co-contribution payment is $1,500.)

If a person's assessable income (plus reportable fringe benefits) is between $28,980 up to a maximum of $58,980, they may be eligible to receive a part co-contribution amount if they make a personal, non-concessional contribution of at least $1,000 into superannuation. A pro-rata formula is used which reduces the co-contribution payment at the rate of five cents for each additional dollar of income over $28,980. Eligible personal superannuation contributions of qualifying low income earners are matched at the rate of up to 150%.
 
Download the full Co-contribution Matrix.

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