If you are a low to middle income earner, you may be eligible to receive up to $500 from the government into your super as a co-contribution.
How does it work?
For the 2018-2019 financial year, if you earn less than $52,697 per year (before tax) and make after-tax super contributions, whether small regular contributions or one lump sum, you may be eligible for a matching contribution from the government.
What do I have to do to receive the co-contribution this year?
- Make a personal after-tax contribution to your super this financial year. However it is important to with your super fund on their closing date as it may be before 30 June to allow for processing.
- Lodge a tax return.
- The government will then work if you are eligible and will paid the co-contribution amount directly into your super fund.
Are there any restrictions?
Yes, you must
- be less than 71 years of age
- not hold a temporary visa at any time during the financial year (unless your are a NZ citizen or it was a prescribed visa)
- have a super balance below $1.6m
- not have exceeded the non-concessional contributions cap
How much will you receive?
If your total income this financial year is less than $37,697, you will receive $0.50c for every dollar you contribute to a maximum of $500. If you contribute $200, the Government’s will contribute $100. If you contribute $1,000 you will receive a co-contribution of $500 from the Government.
If in the 2018-2019 financial year, your total income is between $37,697 and $52,697, the maximum entitlement reduces progressively as your income rises. To find out what co-contribution you are entitled to, check out the ATO has a Super Co-Contributions Calculator.