Want more money for your super?

You could boost your super by as much as $500 if you earn less than $53,564 p.a.* and make a personal contribution into your super account by the end of the financial year.

How it it works

  1. You make a contribution to your super from your after-tax income.
  2. At the end of the financial year, the government reviews how much you’ve earned. If you’ve earned less than $53,564* you could qualify for the co-contribution.
  3. If you do qualify, the co-contribution is paid directly into your LUCRF Super account. You will receive a co-contribution notification letter from the Australian Taxation Office (ATO). The amount will also appear on your following LUCRF Super member statement.

How much will you get?

If you’re a low-income earner, the government will add up to 50 cents for every dollar (after-tax) you contribute, up to a maximum of $500.

The co-contribution is reduced as your income increases. It cuts out completely once you earn over $53,564* p.a.

The table below provides examples of how much the government will co-contribute in line with how much you earn.

Your total income*
Maximum Co-contribution available
Your after-tax contribution
$38,564 or less
$53,564 or more

* including assessable income, fringe benefits and reportable super contributions

The rules

For the 2019/20 financial year, you're eligible for the government co-contribution if:

  1. your total income is under $53,564 and you make at least one after-tax contribution to your super account during theyear
  2. 10% or more of your total annual income is from eligible employment, running a business or a combination of both
  3. you’re an Australian citizen, a permanent Australian resident or a New Zealand citizen working in Australia
  4. you lodge an income tax return (if you’re over 65 you must satisfy the work test) and you’ve given us your TFN, and
  5. you’re under 71 years of age at the end of the financial year.

Frequently asked questions (FAQs)

Why do you need my tax file number (TFN)?

We need your TFN so that we can accept your personal contributions.

If you don’t supply your TFN to us:

  • you may miss out on the government co-contribution because we won’t be able to accept your personal contribution
  • a higher tax rate may apply for certain types of contributions, and
  • additional tax may be deducted when you start drawing down your super.

Do I need to apply for the co-contribution payment?

No. If you’re eligible, you just have to 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 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 us.

Are personal contributions and co-contributions subject to superannuation tax?

No, they are tax-free (provided they are within the contributions cap). They are treated as non-concessional (after-tax) contributions and are not taxed when either paid into your super fund or paid to you as a benefit. However, interest earned on these contributions is taxable.

What is the personal contribution limit?

This is a limit set by the government on the amount of after-tax, personal contributions you can make before you pay extra tax. This is known as the non-concessional contributions cap.

The annual non-concessional contributions cap is $100,000. Any contributions above this limit will incur extra tax. This will be available to members between 65 and 74 if they meet the work test (that is, if they work 40 hours within a 30-day period each financial year).

If you're under 65

You can contribute up to $300,000 in total over a three-year period, depending on your total super balance (on 30 June of the previous financial year). This is known as the 'bring-forward' rule. Visit ato.gov.au for more details.

If you're between 65 and 74

You can contribute up to $100,000 each year, provided you satisfied the work test in that financial year. Under a new work test exemption (effective from 1 July 2019), you can make voluntary contributions for an additional 12-month period (once only) from the end of the financial year in which you last met the work test. To be eligible for the exemption, your total super balance must be less than $300,000 as at 30 June of the previous financial year. You’re not required to stay under this balance cap for the whole 12-month period, however. There is no 'bring-forward' option if you're over 65 or over.

If your super balance is greater than $1.6 million, you cannot make non-concessional contributions nor will you be able to receive the government co-contribution.

Want to learn more?

For more information regarding the Government's super co-contribution scheme, please call us on 1300 130 780, or visit www.ato.gov.au.