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The Government co-contribution scheme is designed to help build your Super.
If you earn less than $49,488 p.a. and make a personal after-tax (non-concessional) contribution into your super account, you may be eligible to receive a Government co-contribution bonus payment of up to $500 per year paid directly into your super account.
The size of the co-contribution reduces on a sliding scale as your total income increases.
Since 2010, over 18,000 LUCRF Super members have taken advantage of the scheme and have shared in more than $11 million in bonus super payments. You can easily be part of this group receiving bonus super payments from the Government if you are eligible for the co-contribution scheme.
- Government co-contribution eligibility
- Personal contributions
- Amount of Government co-contribution provided
- How to make a personal contribution
- Frequently asked questions (FAQs)
- Want to learn more?
To be eligible to receive the Government co-contribution to super, you must:
- Be an Australian permanent resident under 71 years of age at the end of financial year
- Earn 10% or more of your total income from eligible employment, running a business or a combination of both
- Earn a total gross income of less than $49,488 p.a.
- Have provided your TFN to your super fund
- Make a personal after-tax (non-concessional) contribution into your super account by 30 June, and
- Lodge an income tax return.
A personal contribution is a non-concessional contribution, which means that you have not claimed a taxation deduction for it. It is generally made from your after-tax income or directly contributed from other savings.
Please note that your total income may be different to your assessable income, as it includes any salary sacrifice arrangements you may have.
The amount of government co-contribution you may receive in a financial year is determined by:
- Your gross annual income (before-tax income including salary sacrifice contributions and reportable fringe benefits), and
- Your total personal contributions in that financial year
If you earn up to $34,388 in 2014/15, the government will contribute $0.50 directly into your super for every $1 that you personally contribute (up to a maximum of $500 p.a.), for that financial year the contribution was made.
If you earn above $34,388 in 2014/15, the co-contribution will reduce until your income reaches $49,488 p.a. The table below shows how much you may receive from the Government co-contribution scheme.
|2014/15 financial year*|
Personal contributions made
Gross income for the year
Max co-contribution received
Yearly payment required to receive the max. co-contribution
Weekly payment required to receive the max. co-contribution
*Visit http://www.ato.gov.au/Individuals/Super/ or call 13 10 20 for updated details.
A quick and easy way to make personal contributions directly into your LUCRF Super account is via BPay, which can be paid online or by phone.
All you need is LUCRF Super’s BPay Biller Code (484469) and your LUCRF Super BPAY Customer Reference Number (CRN), which can be found on your member card, most recent member statement or by calling us on 1300 130 780.
Having your contribution paid directly out of your payroll each is a great way to manage your co-contributions.
Make sure your employer allows contributions to be deducted from your pay. Fill out the Payroll deduction form and hand directly to your payroll department
Cheque or money order
You can also send a personal cheque or money order to cover your contribution. Address your cheque, bank cheque or money order to LUCRF Super. (Please write your LUCRF Super member number on the reverse side).
Complete the Direct contribution form and post to LUCRF Super with your cheque or money order.
Why do you need my Tax File Number (TFN)?
If you don’t supply your Tax File Number (TFN) to LUCRF Super, we won’t be able to accept your personal contribution and you may miss out on the Government co-contribution.
What you need to know about supplying your TFN to LUCRF Super
Under the Superannuation Industry (Supervision) Act 1993, we are authorised to collect your TFN, which will only be used for lawful purposes. These purposes may change in the future as a result of legislative change.
We may disclose your TFN to another superannuation provider, when your benefits are being transferred, unless you request in writing not to do so. It is not an offence if you don’t quote your TFN.
However, if you do not provide your TFN to us:
- We will be unable to accept personal contributions to your account(s)
- A higher tax rate may apply for certain types of contributions
- Additional tax will be deducted when you start drawing down your super
Do I need to apply for the co-contribution payment?
No. If eligible, just make a personal contribution to your super and lodge an income tax return for the financial year of payment.
How will I know when the co-contribution has been received?
The Australian Taxation Office (ATO) will send you notification of the co-contribution payment, which will also appear on your LUCRF Super member statement for the financial year that it was received by LUCRF Super.
Are personal contributions and co-contributions subject to superannuation tax?
No, they are tax-free, these contributions are treated as non-concessional (after-tax) and are not taxed when either paid into your super fund or paid to you as a benefit. However, interest earned on these funds is taxable.
What is the personal contributions limit?
Each financial year, the government sets a limit on the amount of non-concessional (after-tax, personal) contributions you can make before you pay extra tax. This is known as the non-concessional contributions cap.
Non-concessional super contributions are limited to:
- $180,000 per financial year (or if you are under age 65, and you trigger the bring forward rule from 1 July 2014, which means you can contribute $540,000 over a three-year period).
- Please note, if the bring forward rule has been activated prior to 1 July 2014, your bring forward cap will remain at $450,000 for the three year period (it will not be indexed even though the non-concessional contributions cap is now $180,000).
- Any contributions above this limit will incur extra tax.
For more information regarding the Government co-contribution scheme, please visit the ATO website.