Superannuation Co Contribution

The super co-contribution was introduced from 1 July 2003. It is an Australian Government initiative to help low to middle income earners save for their retirement.

Both employees and the self employed (which includes Family Day Care and In-Home Carers) are eligible to receive the co-contribution.

In previous years the government co-contribution was as high as a $1.50 for every dollar placed into superannuation up to a $1,000 limit. However the current matching rate is now only $1.00 for every dollar. It was announced in the May 2010 budget that this matching rate will not increase until at least the end of the 2012 financial year.

If you are eligible for the co-contribution the government will deposit an additional $1.00 into your superannuation account for every $1.00 you deposit up to a maximum of $1,000. In order to receive the full $1.00 co-contribution your taxable income must be below $31,920.

If your income exceeds $31,920, your co-contribution matching rate will reduce by 3.33 cents for every dollar your income is above this amount until it phases out completely once your income is reaches $61,920.

Refer to the ATO website for more information about the superannuation co-contribution and to use their co-contribution calculator