Government Co-Contributions

Wanna know a self-employment secret? Well gather round and discover that the Government’s ready and willing to give you free money - straight into your super!

It’s called the Superannuation Co-contribution Scheme and exists to help people on incomes lower than $56,112 save more for their retirement. So, if you earn less than $56,112 in FY21/22 then you could be eligible.  

Tell me much can I get?

1) If you earn somewhere between $0 and $41,112 (FY21), for every dollar you contribute to your super, the government will contribute another 50 cents (up to a maximum of $500).

As an example: if you contribute $1,000 for the year – which works out to be around $20 per week – the government will top up your contribution with an extra $500. 

2) If you’re in the next bracket, and you’re earning between $41,112 and $56,112 (FY21) the Government Co-Contribution still applies, but the amount the government will contribute reduces. 

As an example: For someone earning $47,000 per year, and contributing $1,000 to their super, the government will top up their contribution with an extra $304. 

Am I eligible?

Like with many ATO incentives there’s some nitty gritty eligibility criteria attached to the Government Co-contribution. As of 2021/22 you must:

  • be an Australian citizen, a permanent Australian resident or a New Zealand citizen working in Australia
  • be less than 71 years of age 
  • have made at least one voluntary, after-tax contribution to your super fund
  • earn less than $56,112 in that financial year
  • be in full or part-time employment and/or run your own business
  • include all the details of your after-tax contributions on your tax return
  • have a super balance of less than $1.6 million on 30 June of the previous financial year
  • not have exceeded the after-tax contributions cap of $110,000 in the current financial year

We’ve covered off the big ones, but check the ATO website (under Government Co-contribution) to see a full list of the eligibility criteria.

How do I apply?

If getting extra money from the government wasn’t good enough wait until you hear this - no paperwork! 

Yup. That’s right.

If you’re eligible it automatically gets credited to your super account once you’ve completed your tax return.

As long as you haven’t claimed those contributions as a tax deduction.

Note: If you’re a GigSuper member (or a potential member 😊 )

If you’re keen to take advantage of the Government Co-Contribution using GigSuper, make sure you choose ‘no’ when you get to Step 3 in the registration process. It’s the bit that asks if you want to automate the Notice Of Intent To Claim (NOITC) on your super contributions. 

And if you already have a GigSuper account, and your NOITC is automated, you can turn it off anytime via the Tax section.  

Some details our compliance team wants you to know 😊

Everything discussed in this article is of general advice. If in doubt, please talk to your tax accountant, professional advisor, or visit the ATO website.