Q: Where do I go to find a calculator that helps me work out how much co-contribution I will be entitled to, and how much super I need to contribute to get that co-contribution? I am also looking for something that shows the sliding scale for different income levels and different super contributions.
The federal government gives away tax-free money to eligible Australians who makes a non-concessional (after-tax) contribution to their super fund, and who earns less than $52,697 a year (for the 2018/2019 year). The tax-free giveaway is officially called the superannuation co-contribution scheme.
You receive a tax-free super contribution from the federal government when you make a non-concessional (after-tax) contribution to your super account, subject to you satisfying a work test, an income test and an age test, and a newly introduced super balance test. We explain these four tests in our SuperGuide article Cashing in on the co-contribution rules (2018/2019 year).
A schedule you may choose to refer to can be found immediately below this paragraph. Note that you will need confirm your specific co-contribution entitlement with the ATO, or your accountant. SuperGuide has produced this schedule below using the ATO co-contribution calculator. The schedule provides some guidance on four after-tax contribution amounts ($1000, $750, $500 and $250) and what size co-contribution you can expect to receive from this super contribution at 6 different income levels.
Contributions made in the 2018/2019 financial year
|If your personal super contribution is:|
|And your income is:||Your super co-contribution will be:|
|$37,697 or less||$500||$375||$250||$125|
|$52,697 or more||$0||$0||$0||$0|
You can also calculate your co-contribution entitlement more specifically using the ATO co-contribution calculator, which has been updated for the 2018/2019 year. See this link Super co-contribution calculator. The calculator details the co-contribution amounts for the 2018/2019 year (or any year you choose), which should be payable for most Australians by the end of 2019.
The government’s MoneySmart website also has a co-contribution calculator that you can use, but unfortunately the calculator does not indicate which financial year the calculation relates to, which is rather annoying. See this link.
Important: If you have exceeded your annual non-concessional contributions cap, or your Total Superannuation Balance is more than $1.6 million, then you will not be eligible for government co-contributions (for more information, see Superguide article Total Superannuation Balance: 7 reasons why your TSB matters).
For more information…
For more information about how the co-contribution scheme works see the following SuperGuide articles:
- Cashing in on the co-contribution rules (2018/2019 year)
- Your 2018/2019 guide to non-concessional (after-tax) contributions
- Salary sacrificing will not increase co-contribution entitlement
- Co-contributions: Can I claim the tax-free bonus as a property investor?
- Want to make 50% return on your super contribution?
- Does the government’s co-contribution count towards my contributions cap?