Co-Contribution and Other Incentives

If your income is under a certain threshold, making voluntary after-tax super contributions before the end of the financial year (EOFY) on 30 June could make you eligible for a government super co-contribution. You may also be able to take advantage of the low tax rate payable in super on investment earnings (relative to marginal income tax rate).

If you earn less than $56,112 per year and you make after-tax super contributions, the Australian government will also contribute into your super account. The government co-contribution scheme is designed to assist low to middle income earners by boosting their retirement savings over time.


How does the government super co-contribution work?

A maximum government co-contribution of $500 is available, if you make after-tax contributions to your super fund totalling $1,000, and earn $41,112 or less in 2021/22. A reduced amount may be received if you contribute less than $1,000, and/or earn between $41,112 and $56,112 before tax.

If you earn more than $56,112 before tax, you will not be eligible for the co-contribution.

There are other conditions you need to satisfy to receive the co-contribution. Visit the Australian Taxation Office website for more information.

The Australian Taxation Office (ATO) determines whether you qualify for a government super co-contribution based on the data received from your super fund (by 31 October each year for the previous financial year), and the information contained in your tax return. This means there may be a time lag between when you make your after-tax super contribution, and when the government pays the co-contribution.

You do not need to apply for the government co-contribution, however, you will need to provide your tax file number to your super fund. Once you’ve lodged your tax return, the ATO will use the information provided in your tax return, and the contribution information received from your super fund, to confirm your eligibility. Any co-contribution is deposited into your super account.


What do I need to do to get the co-contribution?

If you are eligible for the co-contribution, it’s as simple as making an after-tax contribution of up to $1,000 into your super account during the existing financial year.

You can do this by using your normal banking service to make a BPAY payment directly to your super account. To do this you will need to know your personal super account BPAY details.

If you wish to contribute to your Christian Super account, BPAY details can be found on the Christian Super mobile app, online via MemberAccess, or on your most recent member statement. If you can’t find your Christian Super account BPAY details, contact us, and we can provide them to you.


Can’t afford to make a contribution?

You’re not alone. Recognising this reality, the government also provides automatic superannuation tax relief if your income is under a certain threshold. This program is called the Low Income Superannuation Tax Offset (LISTO), and you can read more about it here.

Disclaimer: The content of this article includes advice that is general in nature and does not consider your personal situation. Christian Super encourages all people considering their options in retirement planning to seek out qualified professionals who can provide specific personal advice.