Untitled Document

Government Superannuation Co-contribution for Low-income Earners and Superannuation Surcharge Reduction Measures

On 7 September 2003, the Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, announced an agreement between the Federal Government and the Australian Democrats that would secure the passage of superannuation reforms

The Government co-contribution of superannuation of up to $1,000 will match qualifying personal superannuation contributions of eligible low-income earners made on or after 1 July 2003.

The maximum $1,000 co-contribution will apply to low-income earners whose total income does not exceed $27,500. Where the taxpayer's income exceeds $27,500 but is less than $40,000 the maximum co-contribution tapers off by eight cents for every whole dollar of income exceeding $27,500.

A minimum co-contribution of $20 is available if income doesn't exceed $40,000. The co-contribution replaces the current maximum $100 rebate on undeducted personal contributions for low-income earners with an income below $27,000, phasing out at $31,000.

To be eligible for the co-contribution, taxpayers should:

have employer superannuation support for the income year;
be aged less than 71 on 30 June of the year in which the contributions were made; and
not hold an eligible temporary resident visa during the year.

Any entitlement to the co-contribution will be automatically detected by the Australian Taxation Office and will be paid directly to the taxpayer's fund.

Universal Consultancy Services
Unit 4, 287 Victoria Road
Quantum Business Park, Rydalmere NSW - 2116
Phone: (02) 9638 3966 Fax: (02) 9638 3060
Postal Address: PO Box 1010 Dundas NSW 2117
Email: sales@diysuperfund.com.au