Under the super co-contribution scheme, the government will contribute $1 for every $2 of personal contributions made by an employed or self employed person.

The maximum government co-contribution is $500.  So if you wish to target the full $500, you will need to contribute $1,000.

To be qualify, one must:-

• Be employed with their employer paying the compulsory SGC or be a self employed person running a business.
• Have 10% or more of one’s income coming from employment and/or a sole trader business.
• Be less than 71 at the end of the financial year.
• Have combined assessable income (that being income before deductions), Reportable Fringe Benefits (RFBA) and employer super contributions in excess of basic SGC amount (RESC) of less than $57,016.
• Have paid a non-deductible contribution into superannuation from after tax money by 30^thJune 2023.  This means the contribution must be made from a personal or joint bank account.
• Not be a temporary visa holder.
• Lodge a Tax Return for the year ending 30^thJune 2023.
• The maximum co-contribution for a personal contribution of $1,000 is $500 if your combined assessable income is under $42,016.  Thereafter it progressively reduces by 3.333 cents for every dollar in excess of $42,016.  There is no entitlement if your combined assessable income exceeds $57,016.
• Not have contributed more than your non-concessional cap.
• Have a total super balance under the Transfer Balance Cap (between $1,600,000 and $1,700,000).

If you want to find out what you might be entitled to, click on the following link to the ATO’s calculator here

Other matters to note are:-

• One’s own contribution and that made by the government will be preserved.  That is, one will not be able to access it until one retires or satisfies another condition of release.
• The ATO will deposit the co-contribution into one’s super account once they have reconciled one’s lodged 2023 Tax Return with the information provided by one’s super fund(s).  Consequently, most co-contributions will not be credited until at least January 2024.
• If your super is with a public or employer superannuation fund, you will need to ensure they accept such contributions.  You also need to obtain the appropriate form.
• You will need to make your contribution well before 30^th For those with your own SMSF, your fund can only accept such a contribution if permitted by its trust deed.  We will take no responsibility where a client does not consult with us beforehand.

What is best for you depends on your circumstances and take into account a large number of considerations.

You should therefore seek financial planning advice to ensure such a contribution will work as intended and is in your best overall interests.