The super co-contribution helps eligible individuals save for their retirement. If you are eligible and you make a personal superannuation contribution, to your fund or Retirement Savings Account (RSA) the Australian Government will also make a contribution.
If you are self-employed, you may be eligible to receive the co-contribution from 1 July 2007.
How do I know if I am eligible?
You are eligible for a co-contribution if:
- you made an eligible personal super contribution in the income year
- your total income (which includes reportable employer super contributions) was less than ($33,516 for the 2013-14 income year)
- 10% or more of your total income was from eligible employment, running a business or a combination of both
- you were less than 71 years old at the end of the income year
- you did not hold an eligible temporary resident visa at any time during the year (unless you were a New Zealand citizen or the holder of a prescribed visa)
- you lodged your income tax return for the relevant income year.
You must meet all these requirements to be eligible.
How is my total income calculated?
The ATO calculate your total income by adding your assessable income and reportable fringe benefits minus business income deductions. This means that if you are self-employed and have a high turnover you may still receive a co-contribution.
The 10% Test
You can only receive the co-contribution if 10% or more of your total income is active income. Active income is income from running a business, eligible employment or a combination of both.
When the Tax Office works out what per cent of your income is active, they ignore your business income deductions. This helps self-employed people with low incomes or low profit margins.
The following table shows if your income is included in total income and if it counts as active income.
| Income Source | Total Income | 10% Test |
| Salary or wages including employment income through a company or trust |
Yes | Yes |
| Director fees as a company director | Yes | Yes |
| Investment Income | Yes | No |
| Income as a sole trader | Yes (net income) |
Yes (gross income) |
| Partnership distribution | Yes | Yes |
| Distribution from a trust | Yes | No |
Online Calculator
The way your super co-contribution is calculated depends on the income year in which you made your personal super contributions.
The ATO have an online Super co-contribution calculator to help you work out the co-contribution you could be eligible to receive, based on information you provide about your income and personal super contributions for the relevant income year.
To use the online calculator you must enter the amounts of your personal super contributions, employment and/or business income including partnership distribution, any reportable fringe benefit amounts, and any other income.
For individuals with business income, you must also enter the amount of business related deductions.
Source: Australian Taxation Office
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