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’.

 


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