Get a super boost with a Government co-contribution
If you put a little bit of extra money in your super before the end of this financial year (and you’re eligible) your super will receive a boost through the Government’s super co-contribution scheme.
Saving for life after work can be challenging. The Government recognises this and offers a co-contribution of up to $500 for low- and middle-income earners who put a little extra into their super account.
You might be eligible for a super co-contribution of up to $500 if:
- Your total income is less than $54,837 (for the 2020/21 financial year) and you make an eligible personal contribution to your super
- 10% or more of your income comes from employment or business-related activities
- CareSuper holds your tax file number (TFN) on file. You're unable to make a personal contribution without a TFN on file
- You have a total super balance of less than the transfer balance cap at 30 June of the previous financial year. The cap is $1.6 million for the 2020/21 financial year (increasing to $1.7 million on 1 July 2021).
And during the 2020/21 financial year, you:
- Were under 71 years of age (as at 30 June 2021)
- Didn’t hold a temporary visa
- Didn’t exceed your non-concessional (after-tax) contributions cap
- Lodged your tax return.
If you meet the criteria, the co-contribution will be paid automatically to your super fund once you’ve lodged your tax return - you don’t need to do anything.
Timing is key
Make sure you submit your eligible personal contribution via BPAY before Thursday 24 June 2021 to ensure it's received by 30 June 2021. If you intend to make an eligible before-tax contribution through your employer, your employer will need to submit the payment and the remittance by 23 June 2021.
Once we receive your personal contribution and the necessary documentation is provided, your personal contribution will generally appear in your CareSuper account within three business days.
The Government co-contribution will be visible in your super account after you’ve submitted your 2020/21 tax return, provided you meet the eligibility requirements.
Learn more about your eligibility to receive a Government co-contribution and making personal super contributions here.
Keep the caps in mind
There are annual limits on the amount you can contribute to super, referred to as ‘contribution caps’. For concessional (before-tax) contributions the limit is $25,000 for financial year 2020/21 and $27,500 in 2021/22. For non-concessional (after-tax) contributions, it’s $100,000 for financial year 2020/21 and $110,000 for 2021/22. Keep these caps in mind when making extra super contributions because if you exceed the cap you might have to pay more tax.
We're here to help
If you have questions about making extra contributions to your super, contact us and we’ll talk you through it.