How to Maximize Your Super Co-contribution in 2009

I have been working on creating a Super Co-contribution Calculator. Superannuation co-contribution is a great way to increase your retirement savings, and it is an Australian Government initiative to help low to middle income earners save for their retirement.

So how much co-contribution can you get from the government?

If you're eligible, you can get $1.5 co-contribution for every $1 you contribute - the maximum co-contribution amount being $1,500. The co-contribution reduces by 5c for every dollar you earn over $30,342 up to $60,342 for the financial year 2008-2009. Use the Super Co-contribution Calculator below to calculate how much you can get.

Calculate Super Co-contribution

Financial Year	2008-20092007-20082004-2007
After-tax Contribution
Annual Total Income
Government co-contribution *
Your Optimum contribution #

* You are entitled to a $20 of co-contribution if the calculated co-contribution amount is between $0 and $20.

# This is the amount you should contribute to maximize return on your investment.

What are the eligibility criteria?

For the financial year 2008-2009, from 1 July 2008, you will be eligible for the co-contribution if:

• you make a personal super contribution by 30 June 2009 into a complying super fund or retirement savings account


• your total income is less than $60,342 (this is indexed annually to reflect changes in average wages)


• 10% or more of your total income is from eligible employment, running a business or a combination of both


• you are less than 71 years old at the end of the year of income


• you do not hold an eligible temporary resident visa at any time during the year lodge your income tax return.

What is Optimum Contribution in the calculator?

If you earn more than $30,342, the co-contribution from the government becomes less and less. For example, if your total income is $40000, the government will chip in $1017.10 whether you contribute $1000 or $678.07. So you're not getting any bonus for extra contribution above $678.07, the Optimum Contribution.

How else can you boost your savings?

You can salary-sacrifice a portion of your salary and invest in your super. Thus you can reduce your taxable income and liable tax too. You won't get co-contribution from the government for that.

Compare Superannuation Funds

Disclaimer: This is just for educational purpose only. The author is not responsible for any consequences or losses due to actions taken solely based on the examples and advices given in this post.