Government super co-contribution:
get up to $1,000 tax-free
Make a personal (after tax) contribution into super and the Government could boost your VicSuper balance with a co-contribution amount of up to $1,000 per annum.
How does this initiative work?
To help more Australians save for retirement, the Government has a co-contribution scheme. It matches eligible super contributions dollar for dollar up to $1,000 in the 2011/12 financial year.
How much can I get?
If you're eligible, the Government will match every $1 of personal (after-tax) contributions you make into super this financial year, up to a maximum of $1,000.
To receive the maximum co-contribution, your income must be below $31,920 this financial year and you need to make a personal contribution of $1,000. The co-contribution amount reduces by 3.333 cents for every dollar of your income which exceeds $31,920, cutting out at $61,920.
| It makes sense to make a contribution this year... |
The Government proposed that from 1 July 2012, it will match $0.50 to every $1 contributed. This is a reduction of the maximum super co-contribution from $1,000 to $500. Also, if you earn $46,920 or more, you will no longer be eligible to receive a partial contribution if the proposal is passed. So it makes even more sense to boost your super this year by taking advantage of the Government co-contribution before it's reduced! |
Maximise your co-contribution!
Use VicSuper's calculator to find out how much Government co-contribution you could receive.
Keep in mind, super fund members can no longer salary sacrifice into super to improve eligibility for certain Government benefits including the co-contribution initiative. Salary sacrifice amounts are included in various income thresholds and therefore can no longer lower your income for assessing eligilbility for various benefits.
Am I eligible?
To qualify for the co-contribution in respect of this financial year, you need to:
- have a total income below $61,920
- earn above 10% of your gross total income as an employee, from operating a business, or both
- not be a temporary resident of Australia at any time during the year (specific rules apply for New Zealand citizens)
- be under age 71 at 30 June 2012
- lodge a 2011/12 tax return and
- make a personal contribution by 29 June 2012 (as 30 June is a Saturday).
These criteria apply to both employees and self-employed people. Please note that if you're self-employed and claim a tax deduction for your personal contribution, this amount won't be eligible for a co-contribution.
What's my total income?
Your total income includes:
- your assessable income for the financial year
- your reportable fringe benefits for the fringe benefits tax year which is 1 April 2011 to 31 March 2012
- any super contributions made by your employer which you have elected to make yourself, such as salary sacrifice.
These are general criteria only. Please visit the ATO website for full details.
How will I receive the super co-contribution?
The ATO will automatically match information from your tax return with information provided by VicSuper. If you're eligible, the co-contribution will be paid into your super account during the 2012/13 financial year and will be preserved until you meet a condition of release.
The co-contribution will generally be deposited into the super account with the most personal contributions this financial year, or which received a co-contribution previously (if applicable). To specify the super account your co-contribution will be paid to, download the 'Superannuation fund nomination' form.
How do I contribute?
Contribution methods for VicSuper members are BPAY, automatic direct debit, and cash or cheque.
BPAY
Contribute using phone or internet banking via your bank or credit union. We'll credit the amount into your account the same business day, provided you make your bank's processing deadline. Otherwise, it will be credited the next business day. To receive VicSuper's biller code and your unique reference number, login to VicSuper MembersOnline or call VicSuper's Member Centre on toll free 1300 366 216.
Automatic direct debit
Contribute small amounts reguarly, and avoid the 29 June rush. Complete and return to us VicSuper's Make personal contributions via direct debit (V307) form.
Cash or cheque
Make individual contributions in cash or cheque. Use VicSuper's Make a personal contribution directly to VicSuper (V301) form, and include the completed form with your cash or cheque contribution. VicSuper must receive your cheque by 29 June 2012. Please note that cash contributions are only accepted if provided in person at one of VicSuper's five superannuation advice centres.
Prefer to receive expert advice?
Our experienced superannuation advisers can help work out your eligibility and the contribution amount that can maximise your superannuation savings. This is a no obligation service offered as part of your membership. Get some personal advice
Forms and publications
All the forms and publications listed on this page can be downloaded from our Forms or Publications pages.
