When the Hostplus account was rolled over to AustralianSuper, the Hostplus account was automatically closed. It is automatically calculated and paid by the Tax Office based on information shown in the super fund’s income tax return, which shows the member’s name, tax file number and with the personal super contributions entered at the correct tax return label. We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. Co-Contribution scheme info. on ‎1 June 2020 02:28 PM. Super co-contributions help eligible people boost their retirement savings. With super co-contribution, the government will match your personal contributions up to a maximum amount. The Government’s super co-contribution is an initiative to help you save for retirement. Government super co-contributions. This is clearly marked. How Does the Super Co-Contribution Work? Views 573. This benefit is for lower-income earners and does not apply to … All forum topics; Previous Topic; Next Topic; Highlighted. If you earn less than the lower threshold and make a personal contribution of $1,000, the Government will make a co-contribution of $500. The Australian Taxation Office will deposit a co-contribution directly into your super account in the following financial year. Make an after-tax contribution up to $1000 within a financial year; And the Commonwealth Government will contribute $0.50 for every $1 you contribute! For the purpose of this test your total income for the financial year is: If you are carrying on a business, you may have a high turnover but still be eligible for the super co-contribution due to your allowable business deductions. Under the scheme, the co-contribution is a payment the Government makes to your super if you are in the low to middle income threshold and make voluntary after-tax contributions to your super. If you are eligible and make personal after-tax (non-concessional) superannuation contributions, you will receive a bonus contribution to your super from the Government. Subscribe to RSS Feed; Mark Topic as New; Mark Topic as Read; Float this Topic for Current User; Bookmark; Subscribe; Printer Friendly Page; Ask a question. The Super Co-contribution scheme is an initiative aimed at helping eligible people boost their retirement savings. The superannuation co-contribution scheme is a government initiative that aims to assist low to middle-income earners save for their retirement. If you’re on a lower income and make after-tax contributions to your super, the Government may reward you by adding even more to your balance. The super co-contribution itself is not taxed, however any amounts earned on the co-contribution will be subject to the super fund’s tax rate. Replies 4. The superannuation co-contribution first applied in the 2003/04 financial year. If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take. This could mean reaching your super goals sooner, rather than later. Setup mygov and link to ATO online services, Amounts you don't need to include as income, Occupation and industry specific income and work-related expenses, Financial difficulties and serious hardship, Instalment notices for GST and PAYG instalments, Your obligations to workers and independent contractors, Encouraging NFP participation in the tax system, Australian Charities and Not-for-profits Commission, Departing Australia Superannuation Payment, Small Business Superannuation Clearing House, Annual report and other reporting to Parliament, Complying with procurement policy and legislation, Eligibility for the super co-contribution, Government super contribution labels in your tax return, Aboriginal and Torres Strait Islander people. Low income super tax offset If you earn $37,000 or less a year, and you (or your employer) make concessional super contributions, the government may refund the tax you paid on those contributions back into your super account, up to a maximum of $500 per year. The Australian Taxation Office will deposit a co-contribution directly into your super account in the following financial year. How much is the co-contribution? The ATO determines if you have met the criteria to receive a co-contribution. Once total income exceeds $37,697, the co-contribution decreases by 3.333 cents in every dollar paid into super. Working out the exact total income and eligible income may be complex, depending on your circumstances. Be aware that certain types of super contributions don’t attract a super co-contribution. If your total income is less than $53,564 in a financial year and you make after-tax contributions to your super in the same year, the Commonwealth Government will contribute up to $0.50 for every $1.00 you contribute, to a maximum of $500. Effectively, the government is donating money when a person makes a non-concessional (after tax) contribution to their super fund and their income is less than $51,813 (for 2017-18). Super co-contribution. The Commonwealth Government will match up to 50% of your personal contributions in a financial year, up to a maximum of $500. If you make a Non Concessional Contribution of $800, you will receive a Government Super Co-Contribution of $400. Super co-contribution scheme – a great initiative to boost your retirement savings. Jonty. General Advice Warning. The Commonwealth Government will match up to 50% of your personal contributions in a financial year, up to a maximum of $500. You can use the Super Co-Contribution calculator (available on ASIC’s MoneySmart website) to find out how much you may be eligible for. Low income super tax offset If you earn $37,000 or less a year, and you (or your employer) make concessional super contributions, the government may refund the tax you paid on those contributions back into your super account, up to a maximum of $500 per year. Effectively, the government is donating money when a person makes a non-concessional (after tax) contribution to their super fund and their income is less than $51,813 (for 2017-18). The super co-contribution is only available to low and middle income earners (i.e. When the Hostplus account was rolled over to AustralianSuper, the Hostplus account was automatically closed. The super co-contribution is only available to low and middle income earners (i.e. on ‎1 June 2020 02:28 PM. business income earned as a sole trader or in a partnership, income from individually or jointly held assets, such as interest, rent and dividends. Watch Queue Queue The Government’s super co-contribution is an initiative to help you save for retirement. If you’re on $35,469 or less a year, the government will contribute 50 cents for every dollar you contribute, up to $500. The ATO determines if you have met the criteria to receive a co-contribution. If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice. Super Co-Contribution Options Menu Options. For more information about the Government co-contribution, read the Super Co-Contribution Fact Sheet or refer to the ATO website. See if you're eligible and estimate your co-contribution with the ATO’s Super co-contribution calculator. Cut more than $200 off your energy bills. The Co-contribution scheme rewards you for personally contributing to your super after tax by offering to match a percentage of your contribution. The maximum co-contribution of $500 reduces by 3.33 cents for every $1 that your total income exceeds $33,516 (2013/14), up to $48,516. You don't need to apply for the super co-contribution. How Much Super Co-Contribution Will I Get? Any co-contribution that’s owed to you will usually be deposited into your super account. If you earn less than $37,000 per year, the Government could refund the tax you pay on any before-tax contributions up to a maximum of $500. © Australian Taxation Office for the Commonwealth of Australia. Make sure you have the information for the right year before making decisions based on that information. What this means is depending on the amount of income you earn each year, the government may add to your super balance when you make a voluntary after-tax contribution. Super co-contributions What is a co-contribution A co-contribution is an extra amount the Government adds to your super if you're a lower income earner who has made after-tax contributions and are otherwise eligible. Receive a co-contribution of up to $500. You can use the Super Co-Contribution calculator (available on ASIC’s MoneySmart website) to find out how much you may be eligible for. Some of the information on this website applies to a specific financial year. The super co-contribution helps eligible people boost their retirement savings. To receive the co-contribution, your total income must be less than the higher income threshold for that financial year (see Income thresholds). How to save thousands If your total income is between the two thresholds, your maximum entitlement will reduce progressively as your income rises. Often referred to as the 'Government co-contribution', or simply 'co-contributions', this is an additional contribution paid by the Australian Government to you as a reward for making an after tax personal contribution to your super. The Super Co-contribution is a Government initiative to match personal super contributions by low and middle income earners. Replies 4. You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products). In that year the co-contribution was set at 100% matching up to $1,000 – that is, if someone made a $1,000 personal non-concessional contribution and met the other requirements the government would pay another $1,000 into their super … Enthusiast. A payment made by the Government to the super fund of a low or middle income earner to reward them for making personal contributions to super. If your total income is $33,516 or less in the 2013/14 financial year, you will receive a tax-free contribution when you make a non-concessional (after-tax) contribution to your super account. The maximum Government co-contribution that will be paid is equal to 50 cents for every $1 of eligible Non-Concessional contributions made into your account. The super co-contribution does not need to be claimed. Dumb question, but for super co-contribution, were we meant to specify anything in our tax return, or is it given automatically at a later date (assuming other criteria have been met)? We will determine if you have met the criteria for the government super co-contribution after you have lodged your tax return. We intend you to use this calculator as a guide only. Super co-contribution. Be aware that certain types of super contributions don’t attract a super co-contribution. Super co-contributions help eligible people boost their retirement savings. This means if you don’t use the full amount of your concessional contribution cap ($25,000 in 2020-21), you can carry-forward the unused portion and take advantage of it up to five years later. If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take. How much of a co-contribution you can get depends on your income and on the size of your contribution. Super Co-Contribution 2014 FY. and you make non-concessional (i.e. To be eligible for a co-contribution you must meet the eligibility requirements. If you’re on a lower income and make after-tax contributions to your super, the Government may reward you by adding even more to your balance. For the 2019-2020 income year, the two thresholds are $38,564 (lower) and $53,564 (upper). Super Co-Contribution Options Menu Options. Setup mygov and link to ATO online services, Amounts you don't need to include as income, Occupation and industry specific income and work-related expenses, Financial difficulties and serious hardship, Instalment notices for GST and PAYG instalments, Your obligations to workers and independent contractors, Encouraging NFP participation in the tax system, Australian Charities and Not-for-profits Commission, Departing Australia Superannuation Payment, Small Business Superannuation Clearing House, Annual report and other reporting to Parliament, Complying with procurement policy and legislation, Eligibility for the super co-contribution, Government super contribution labels in your tax return, Claiming deductions for personal super contributions, Aboriginal and Torres Strait Islander people, have made one or more eligible personal super contributions to your super account during the financial year, pass the two income tests (income threshold and 10% eligible income tests), be less than 71 years old at the end of the financial year, not hold a temporary visa at any time during the financial year (unless you are a New Zealand citizen or it was a prescribed visa), lodge your tax return for the relevant financial year, have a total superannuation balance less than the transfer balance cap ($1.6 million for the 2019–20 financial year) at the end of 30 June of the previous financial year, your reportable fringe benefits total (RFBT), your total reportable super contributions reduced (but not below zero) by any excess concessional contributions, your assessable first home super saver released amount. The way your co-contribution is calculated depends on the financial year in which you made your personal super contributions. Government Super co-contribution scheme FACT SHEET What is the Government co-contribution scheme? If you’re thinking about making extra contributions to your super, our superannuation calculator can also help you decide between before-tax contributions such as salary sacrifice or after-tax contributions. If your total super balance is less than $500,000 at 30 June, you can ‘carry forward’ any concessional contributions over a rolling five-year period. Super Co-Contribution 2014 FY. Make sure you have the information for the right year before making decisions based on that information. For this test, your total income is not reduced by your allowable business deductions. To be eligible for a co-contribution you must meet the eligibility requirements. Hey, it may not sound like much, but it’s still free money! Here’s how it works. 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