The government co-contribution helps low and middle-income earners boost their superannuation by making a contribution of up to $500 pa. There is no need to apply. If you are eligible and the fund has your tax file number the governement will automatically pay t into your account.
In order to qualify you must;
- Make personal contributions to a complying super account.
- Have income less than $51,021 (2017-2018 tax year).
- 10% or more of your total income must come from eligible employment or carrying on a business.
- Be less than 71 years of age.
- Not be holding a temporary visa.
- Lodge a tax return.
John earns $50,000 from eligible employment and makes personal (after tax) contributions of $3,000 to his complying fund. Because his eligible income is below $51,021 and his contribution exceeds $500 he will get the full $500 government co-contribution.
If, for example, he had only contributed $400 then that would have been the maximum government co-contribution.