SUPERANNUATION

Co-contributions

The Government pays a co-contribution of a multiple of personal contributions where income is less than $31,920. For incomes between $31,920 and $61,920, the maximum co-contribution is gradually phased out with no co-contributions payable where income is equal or greater than $61,920.

The amount of co-contributions payable from 1 July 2009 will vary as per the following table.
 
 

Financial years
2009-10 to 2011-12

Financial years
2002-13 to 2013-14

Financial years
2014-15 and after

Matching rate

 100% 125% 150%

Maximum
co-contribution

 $1,000 $1,250 $1,500

Reduction in excess
of threshold

 3.333 cents 4.167 cents 5 cents
 
CSS and PSS contributing members with a salary of less than $61,920 and paying member contributions would be entitled to receive a co-contribution from the Government. The co-contributions would be based on their CSS or PSS member contribution deducted from their salary. The Government, through the Australian Tax Office, will pay the co-contribution into the person's CSS or PSS superannuation account. On retirement the co-contribution is paid as a lump sum from the CSS or PSS as it cannot be converted to an indexed pension.

Co-contributions are only paid for PSSap members if they make after tax personal contributions to the PSSap and their salary is less than $61,920.

The lower threshold of $31,920 is for the 2009 – 2010 financial year and is indexed by Average Ordinary Times Earnings (AWOTE). The upper threshold of $61,920 is $30,000 above the lower threshold.