$500 Super co-contribution payout on offer till July 1
Millions of working Australians have just a few days left to secure a free $500 from the government, with the cash bump on offer until July 1.
The boost comes in the form of the government’s Super Co-Contribution Scheme, which is designed to help lower-income Australians top up their retirement savings by partially matching individual contributions to superannuation.
For Australians under the age of 71 years and on a taxable income below $42,000, the government will match each dollar voluntarily invested into a super fund by 50c, capping the offer at $500.
So if a worker puts in $1000 into his or her super, the government will add $500 for free.
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If a worker puts in $500, the government will kick in $250.
The Super Co-Contribution Scheme is designed to help low income workers top up their retirement savings. It is available once every financial year. NCA NewsWire / Nicholas Eagar Credit: NCA NewsWire
“If you’re a low or middle-income earner and make personal non-concessional (after-tax) contributions to your super fund, the government may also make a co-contribution up to a maximum of $500,” the Australian Taxation Office said.
“The government co-contribution you receive depends on your income and how much you contribute.
“You don’t need to apply for the super co-contribution.
“When you lodge your tax return, we will work out if you’re eligible.
“If your super fund has your tax file number, we will pay it to your super account automatically.”
The offer for the 2023-24 financial year lasts until July 1, when the next financial year begins.
Super Co Contribution TikTok
Personal non-concessional super contributions are the amounts paid into a super fund from after-tax income (or take-home pay), the ATO said.
“These contributions are in addition to any compulsory super contributions your employer makes on your behalf, and do not include super contributions made through a salary-sacrifice arrangement or personal contributions that have been claimed as an income tax deduction.”
The scheme went viral earlier this year after TikTok creator YouthForce highlighted the scheme.
“If you are able to do it, why not? Go for it.” the woman said.
The video has racked up nearly 900,000 views.
“Did this so many times while in uni and now my super balance is stacked!” Tiktokker Michael Jasper says in the comments section of the video.