A common question and consideration from educators is how the superannuation co-contribution works and how they can take advantage of it.
Basically, If you are considered a low to middle-income earner and make a contribution to your super fund, you might be eligible for a government co-contribution of up to $500.
What is a super co-contribution?
The superannuation co-contribution scheme is a government initiative that aims to assist low to middle-income earners save for their retirement.
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 - i.e. any superannuation contribution you make for which you do not claim a tax deduction.
The amount you receive will depend on how much you contribute as well as your income.
Are you eligible for a super co-contribution?
To be eligible for a super co-contribution from the government, generally you must:
make an after-tax contribution to your super fund
lodge your annual tax return
have a total income that’s less than $52,697 for the 2018-19 financial year, or $53,564 for the 2019-20 financial year
receive 10% or more of your income from eligible employment and/or running a business
be no older than age 70 at the end of the financial year that you’re making the contribution
have a super balance below $1.6 million as at 30