Co-contribution
How does it work?
If you earn less than $28,980 a year (including reportable fringe benefits) the Government will more than match your personal after-tax contibutions. They will contribute $1.50 for each dollar you contribute (after-tax) up to a maximum co-contribution of $1,500 per year.
If you earn more than $28,980 but less than $58,980 a year, your co-contribution will reduce 5c for each dollar you earn over $28,980.
If you earn more than $58,980, you are not able to receive the co-contribution.
How do I make an after-tax contribution?
Voluntary contributions can be easily paid into your superannuation account by your employer through a payroll deduction or by you via EFT, BPAY® or cheque.
To have your after-tax contributions paid to HIP account through a payroll deduction, simply complete the HIP After-tax Contribution Form and hand it to your employer.
To make a once-off contribution via cheque, simply complete the HIP Once-off Contribution Form and post to HIP, Locked Bag 23, Haymarket NSW 1236.
As these contributions have already been taxed as earnings (at the marginal tax rate that applies to you) they are not taxed when deposited into your superannuation account or if you withdraw your superannuation benefit as cash when you retire.
How do I get the co-contribution?
If you are eligible to receive the co-contribution and have been making personal contributions to HIP, you will recieve the co-contribution in your super account after the end of the financial year.
Once you lodge your tax return, the Australian Taxation Office (ATO) will calculate how much co-contribution you will recieve. HIP is required to report all personal contributions to the ATO.
Is the co-contribution taxed?
The co-contribution is primarily tax-free. You do not pay the 15% contributions tax when the amount is paid into HIP Super and when you retire the co-contribution amount is tax-free. However, any earnings that the co-contribution amount receives will be taxed at 15%.
Our online contributions calculator will show you a personal example of how voluntary contributions boost your super.
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