Yahoo Finance How to get the Government to put an extra $500 in your super
Low to middle income earners who make a contribution to their super funds can be eligible for a co-contribution of $500 from the Government.
Those who earn below $56,112 who make an after-tax contribution to their super which they haven’t claimed a tax deduction can be eligible.
The superannuation co-contribution scheme is a Government initiative aiming to assist low to middle income earners save for retirement, AMP said.
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“Depending on the amount of income you earn each year, the government may add to your super when you make a voluntary after-tax contribution, which you don’t claim a tax deduction for,” AMP said.
“The amount you receive will depend on how much you contribute as well as your income.”
Who is eligible for a co-contribution?
AMP said to be eligible for a super co-contribution from the government, you must:
Make an after-tax contribution to your super fund, which you don’t claim a tax deduction for
Lodge your annual tax return
Have a total income that’s less than $54,837 in the 2020/21 financial year, or $56,112 in the 2021/22 financial year
Receive 10 per cent 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 total super balance below $1.7 million as at 30 June of the financial year prior to the year that you’re contributing (ie 30 June 2021 for contribution in 2021/22)
Not have exceeded your non-concessional contributions cap for the year
Not have held a temporary visa at any time during the financial year (unless you’re a New Zealand citizen, or it was a prescribed visa)
How can you get a super co-contribution?
You don’t need to apply for the co-contribution, but you’ll need to make sure your super fund has your tax file number.
Then, once you have lodged your tax return the ATO will use the information provided and the contribution information from your super fund to work out your eligibility.
If you’re eligible, the ATO will automatically calculate the amount that’s owed to you and will deposit it into the super fund.
If you’ve recently retired and have closed your super account, it may be possible to have your co-contribution paid to you directly.
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