Co-contributions

Are you eligible for a government boost to your super? Find out now.

Super co-contributions

The super co-contributions scheme is an easy way for eligible members to grow their super.

How co-contributions can boost your super

If your annual total income is less than $61 920* pa you may be eligible for a government  co-contribution (note that other eligibility requirements also apply). The amount of the co-contribution depends on income levels and the amount contributed. It could be as much as $1000.

For every $1 earned over $31 920* the amount of the co-contribution reduces and phases out completely at $61 920*.

Use our Super co-contribution calculator to see how much your co-contribution could be.

*Figures are for the 2011/12 financial year.

Are you eligible?

Generally, to be eligible for co-contributions you need to:

• earn an annual total income of less than $61 920* per year, with at least 10% of your total income (that is, assessable income, reportable fringe benefits and reportable employer super contributions) coming from eligible employment
• make an eligible personal super contribution during the income year into a complying superannuation fund and don’t claim a deduction for all of it
• be less than 71 years of age at the end of the financial year
• be a permanent resident of Australia (limited exceptions apply for New Zealand citizens and other prescribed people holding temporary visas)
• lodge an income tax return, and
• meet the requirements of super law for making voluntary contributions. These requirements are summarised in UniSuper’s Lump sum vopluntary member contribution form.

UniSuper needs your tax file number before it can accept your personal contributions or a government co-contribution.

Making a payment

It’s easy to make a voluntary payment by BPAY® or cheque.

BPAY®

There are no forms to fill out – just transfer your contribution directly into your UniSuper account. All you need are the following details:

*If your Membership Number starts with 137, 138 or 139 you may need to use a unique BPAY Customer Reference Number.

BPAY® is a registered trademark of BPAY Pty Ltd ABN 69 079 137 518

Cheque

• Download, print and complete the Lump Sum voluntary member Contribution form
• Make out a cheque to UniSuper Limited – please write your UniSuper membership number on the back.
• Mail your form and cheque to:
  UniSuper
  Level 35/385 Bourke Street
  Melbourne Vic 3000

UniSuper does not accept cash payments.

Claiming contributions

Claiming your government co-contribution is easy.

If you’re eligible, the Australian Taxation Office can pay your government co-contribution directly into your UniSuper account once you submit your income tax return. Preservation rules apply.

Remember – we must have your tax file number on record to accept your co-contribution. To notify UniSuper of your tax file number, download a Tax file number collection form, complete it and return it to UniSuper.

Also, any contributions you claim as a tax deduction aren’t entitled to a co-contribution.

Government cap on contributions

The government imposes limits on the total amount of contributions that you can make to super in each financial year and still receive concessional tax treatment on those contributions. If you exceed these limits, you may pay a much higher tax rate on any contributions that exceed the limits, or we may refuse to accept contributions in some circumstances.

Each cap applies to all contributions made by you or made on your behalf in a financial year, regardless of how many employers or super funds you have. The government’s co-contribution is not included in either of the caps.

It’s your responsibility to monitor the contributions made into your UniSuper account, and to any accounts you may hold in other super funds, to ensure that you don’t exceed the caps.

Cap on before-tax (concessional) contributions

As long as your combined employer and salary sacrifice contributions (i.e. your total before-tax (concessional) contributions) do not exceed $25 000 in the 2011/12 financial year, these contributions will only incur the 15% contributions tax provided we have your tax file number (TFN).

The concessional contributions cap will be indexed annually to average weekly ordinary time earnings, and rounded down to the nearest multiple of $5 000.

However, if you exceed the concessional contributions cap, any excess contributions will be taxed at 46.5% (which means that an additional 31.5% is levied on top of the 15% contributions tax already imposed).

A higher annual cap of $50 000 applies if you are aged 50 years or over during the period from 1 July 2009 to 30 June 2012. If you turn 50 during this period you can also access the higher cap for the years up until 30 June 2012. This higher cap will not be indexed.

Cap on after-tax (non-concessional) contributions

You can make up to $150 000 of personal after-tax contributions to your super fund for the 2011/12 financial year. This is known as the non-concessional contributions cap.

If you are under 65 years of age, you may be able to make non-concessional contributions of up to $450 000 over a three-year period.

This allows you to ‘bring forward’ the next two years of contributions, potentially making a contribution of up to $450 000 in a single year. However, be careful if you are considering doing this, as contributions that exceed the cap will be taxed at 46.5%.

If you are aged over 65 you will need to satisfy the work test* to make contributions. And, unfortunately, you cannot take advantage of the ‘bring forward’ provisions, so the maximum annual cap of $150 000 will apply.

* The Work Test: You must have worked for at least 40 hours in a period of 30 consecutive days in the financial year in which any superannuation contributions are made.

Please note, any excess concessional contributions also count towards your non-concessional contributions cap.

If your contributions exceed both the concessional and non-concessional contributions caps in a financial year, the excess amount could end up being taxed at 93% overall.

To read more about government co-contributions, see A Super Co-contribution can boost your retirement savings fact sheet and the relevant Product Disclosure Statement.