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 anyone who makes a non-concessional (after-tax) contribution to their super fund, and who earns less than $51,813 a year (for the 2017/2018 year), or who earns less than $52,697 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. We explain these three tests in our SuperGuide article Cashing in on the co-contribution rules (2018/2019 year).
The schedule you refer to can be found immediately below this paragraph. The ATO has produced a version of this table (which we have adapted), and we tried several times to identify the link for the page where this table appears, but you can only access it via a print-friendly version of a larger document. For convenience, and many thanks to the ATO for creating this table, we have reproduced the ATO table below, which provides some guidance on 4 after-tax contribution amounts ($1000, $800, $500 and $200) and what size co-contribution you can expect to receive from this super contribution at 6 different income levels.
Contributions made in the 2017-2018 income year
|If your personal super contribution is:|
|And your income is:||Your super co-contribution will be:|
|$36,813 or less||$500||$400||$250||$100|
|$51,813 or more||$0||$0||$0||$0|
Table source: ato.gov.au
You can also calculate your co-contribution entitlement more specifically using the ATO co-contribution calculator, which has been updated for the 2017/2018 year. See this link Super co-contribution calculator. The calculator details the co-contribution amounts for the 2017/2018 year (or any year you choose), which should be payable for most Australians by the end of 2018.
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?