Superannuation Co-Contributions: Myths, Facts & Tips #4

Myth
You have to apply to receive the Super Co-Contribution.

Fact
There is no application process for Super Co-Contribution – it is paid automatically to eligible people who make a personal contribution to their super.

Tip
To make sure you receive any co-contribution you are eligible for, make sure your fund has your tax file number and your contribution is with your fund before 30 June. The Super Co-contribution will be pain into your super fund after you lodge your income tax return.

Superannuation Co-Contributions: Myths, Facts & Tips #3

Myth
Everyone can get a Super Co-Contribution of $1.50 for every $1 they contribute to super, regardless of how much they contribute and earn.

Fact
The maximum Super Co-Contribution people can receive is $1,500 per year. People earning $28,000 or less per year receive $1.50 for every $1 they contribute up to a maximum co-contribution of $1,500 per year.

The amount of co-contribution paid for each dollar of personal contribution made by people earning more than $28,000 but less than $58,000 a year reduces on a sliding scale.

Tip
Use the ATO calculator to work out how much co-contribution you could receive.

Superannuation Co-Contributions: Myths, Facts & Tips #2

Myth
I never have $1,000 to contribute at any one time so I miss out on the Super Co-contribution.

Fact
You can contribute small amounts of personal contributions over the whole year.

Tip
If you are eligible, Super Co-contributions are paid into your super fund automatically once you do your tax return

Superannuation Co-Contributions: Myths, Facts & Tips #1

In preparation for 'simpler super' the commissioner has released a series of factsheets to help people understand what is fact or fiction when it comes to superannuation.

Super Co-contributions

Myth
Contributions that come out of my salary or wages before tax has been taken out count towards getting the Super Co-contribution.

Fact
One of the rules for the Super Co-contribution is that you have to make personal contributions and do not claim an income tax deduction for the contribution. Most employees will not be able to claim a deduction for personal contributions they make. From 1 July 2007 the Super Co-contribution is being extended to the self employed.

Tip
You don’t need to wait until the end of the financial year to make one big contribution. You can also make small regular contributions to take advantage of the Super Co-contribution.