If your client’s income (ie assessable income*, reportable fringe benefits and reportable employer super contributions) in 2019-20 is less than $53,564 and at least 10% of this income is derived from employment activities (including self-employment), your client may be entitled to the government super co-contribution.
To be eligible, the member needs to:
• be under 71 at the end of 2019-20 and
• if aged 65 or over, meet the work test or qualify for the work test exemption (to be able to make a personal contribution),
• have not exceeded their non-concessional contributions cap for 2019-20, and
• have a total super balance below $1.6 million on 30 June 2019.
The maximum Government co-contribution is 50 cents for every $1 of eligible personal super contributions made in a financial year and is subject to an income test. The maximum co-contribution of $500 reduces by 3.333 cents for every $1 that the individual’s total income exceeds $38,564 and phases out once it reaches $53,564.
The income used to calculate the amount of the co-contribution is the sum of the assessable income7, reportable fringe benefits and reportable employer super contributions, less any amounts that the individual is entitled to claim as a tax deduction as a result of carrying on a business.