Friendly Reminder to get your free $500 Super Co-Contribution before EOFY
https://www.ato.gov.au/Individuals/Super/In-detail/Growing-your-super/Super-co-contribution/
Don't forget (as I have in the past) to receive your free money from the government.
If you're currently on a low income (< $53,564 for 2019–20) and have a little extra money outside of emergency savings it could be a good idea to contribute post-tax to your super to get free money from the government added to your super.
Maximum co-contribution is 50% up to $500, so contribute $1000 and receive $500 from the government into your super.
Income to contribution is:
| Income | Personal super contribution of $1,000 | Personal super contribution of $800 | Personal super contribution of $500 | Personal super contribution of $200 |
|---|---|---|---|---|
| $38,564 or less | $500 | $400 | $250 | $100 |
| $41,564 | $400 | $400 | $250 | $100 |
| $44,564 | $300 | $300 | $250 | $100 |
| $47,564 | $200 | $200 | $200 | $100 |
| $50,564 | $100 | $100 | $100 | $100 |
| $53,564 or more | $0 | $0 | $0 | $0 |
All you need to do is contribute via BPAY or however else your fund accepts voluntary post-tax contributions. No paperwork, your co-contribution will automatically be added by the government after you do your tax return.
Keep in mind if you have accessed your super through COVID-19 early release scheme and want to contribute back to get the co-contribution, talk to an accountant or the ATO first, as the ATO has said this may be considered fraud.
EDIT: Check out the Co-Contributions Calculator to see if you're eligible and what level of co-contribution you should receive.
EDIT: as passthesugar05 pointed out, you need to have some income (10%) from employment or running a business to do this.
eg. If you earned $50,000 purely from dividends you're not eligible.
If you earned $45,000 from dividends and $5,000 from employment, you are eligible.
EDIT again: as pointed out by arjun512 worth checking with your super provider as they may not process your contribution immediately and you could miss out if you don't contribute well enough before EOFY June 30.