boosting employee super
The superannuation co-contribution scheme is a government initiative to help people boost their retirement savings. If employees are eligible low- or middle-income earners, and make personal (after-tax) contributions to their super fund, the government also makes a contribution of up to $500.
The amount of super co-contribution depends on the amount of non-concessional (after-tax) contributions employees put into their super and the ‘matching rate’ for the financial year they made the contribution. Eligible employees don’t need to apply, they just make personal super contributions to their super fund or retirement savings account and lodge an income tax return.
To see if they are eligible for co-contribution, employees can go to ‘super co-contribution’ on the ATO web page ‘Super changes – frequently asked questions’.
more articles about: guide to superannuation
- employer obligations
- superannuation reforms
- how superannuation works
- should they stay or should they go?
- superannuation contribution changes
- compliance options
- changes to SMSF Levy
- super contributions caps
- how to set up a super for an employee
- how much to pay and when
- help for small businesses
- modern awards
- insurance requirements
- salary sacrifice
- boosting employee super
- superannuation guarantee age limit
- records you need to keep
- the importance of communication