If you're earning less than $53,564 a year (in FY20), you need to know about the Government Co-contribution
There’s a way to get the government to put up to an extra $500 into your super account every year.
Yes, you read that right. The government will give you up to an extra $500 per year.
The thing is, it only applies if you’re earning less than $53,564 per year (in FY20) and you make a contribution into super yourself first.
This benefit is called the Government Co-Contribution and works in the following way:
1) If you earn somewhere between $0 and $38,564 a year (in FY20), for every dollar that you personally contribute to super, the government will contribute another 50 cents (up to a maximum of $500). In other words, if you contribute $1000 for the year – which is only $20 per week – the government will top up your contribution with an extra $500 into your super account at the end of the year. Yes, they will give you $500 into your super account.
2) If you’re in the next bracket, and you’re earning between $38,565 and $53,564 a year (in FY20), the Government Co-Contribution also applies, but the difference is that as your income gets higher, the maximum amount of this benefit reduces. So, for example, someone who is earning $46,000 per year that contributes $1,000 will get a $252 Government Co-Contribution.
And if getting extra money from the government wasn’t great enough, you’ll also be happy to know there’s no paperwork required either. If you’re eligible, the Government Co-Contribution automatically gets credited to your super account once you’ve done your tax return as long as you haven’t claimed those contributions as a tax deduction.
Just keep in mind, though, that like many things to do with getting tax incentives from the ATO, there are some additional eligibility criteria. We’ve covered off the big ones here, but you should check the ATO website under Government Co-contribution to see a full list of the eligibility criteria. Also, this shouldn’t be considered as tax or financial advice. If in doubt, please talk to your tax accountant, professional advisor or visit the ATO website.
If you’re ready to take advantage of the Government Co-Contribution using GigSuper, just make sure you choose “No” when you get to Step 3 in the app which asks if you want to automate your Notice Of Intent To Claim (NOITC). If you already have a GigSuper account and your NOITC is automated, you can turn it off anytime from within the app. Feel free to reach out at firstname.lastname@example.org if you have any questions.