News & Information

Tell me more about Co Contributions

June 09, 2016

Co Contributions are designed to help lower income earners boost their retirement super benefits. After all, every penny counts!

To qualify for the Co Contribution benefit, there are a couple of measures that need to be met. If you can answer Yes to all the following you will be eligible:

  1. You have made one or more eligible contributions to your personal superannuation account
  2. you pass two income tests. Currently, if you earn less than $50,454 in the 15/16 financial year
  3. 10% or more of your total income comes from employment related activities or you are carrying on a business. You can also have a com
    bination of both
  4. You are less than 71 years old at the end of the financial year
  5. You are a permanent resident (With the exception of New Zealanders) and
  6. you have lodged a tax return for the relevant financial year

You are not allowed to claim an entitlement to a Co Contribution for personal contributions that have been allowed as a tax deduction.

In simple terms, if you a permanent resident/citizen of Australia, are employed and earn less than $50,454, you will be entitled to receive a Co Contribution from the ATO.

You claim the entitlement to the Co Contribution when you complete your personal tax return.

The following table illustrates the benefit to you if you qualify for a Co Contribution benefit:

  Your Super Contribution is:
  $1,000 $800 $500 $200
And your income is: Your super co-contribution will be:
$35,454 or less $500 $400 $250 $100
$38,454 $400 $400 $250 $100
$41,454 $300 $300 $250 $100
$44,454 $200 $200 $200 $100
$47,454 $100 $100 $100 $100
$50,454 or more $0 $0 $0 $0

Please feel to call us today if you would like more information on this matter.