What contributions qualify for co-contribution?
Only personal contributions from your after tax income qualify for co-contribution. These could be after-tax contributions to any RBF scheme or the RBF Investment Account.
The following superannuation payments do NOT qualify:
- Superannuation payments made by your employer
- Salary sacrifice contributions to any scheme or account (pre-tax contributions)
- Contributions for which a tax deduction has been claimed by a person who is self employed
- Contributions made by a spouse into your superannuation
For RBF Members, this means that:
- Personal contributions made to the RBF Investment Account from after tax earnings (Voluntary Contributions) are eligible
- Member contributions to the Contributory Scheme, State Fire Commission Superannuation Scheme or Tasmanian Ambulance Services Superannuation Scheme are eligible
Members must also satisfy certain requirements in order to qualify for co-contributions.
Who qualifies for the co-contribution?
To qualify for a co-contribution, you must satisfy all of the following requirements:
- Have made a personal contribution to your superannuation account this financial year
- Have an "assessable income" (including reportable fringe benefits) of less
than $60,342 for 2008-09
- Have had 10% or more of income from eligible employment
- Lodge an income tax return for the financial year
- Be less than 71 years of age at the end of the financial year in which
you made voluntary contributions
- Not have an eligible temporary residents visa.
Eligible employment generally means anything resulting in your being treated
as an employee. Income from eligible employment also includes the income of some
employees who think of themselves as being self-employed, such as those who run
their business through a company and the company pays them salary or wages.
How much co-contribution will I receive?
The rate of the co-contribution is a dollar fifty for every dollar up to the maximum available given the person's income level.
The maximum co-contribution that can be made by the Government is $1,500, and is available for persons with an assessable annual income (including reportable fringe benefits) of $30,342 or less.
The maximum co-contribution is reduced by a rate of 5 cents in the dollar for persons with assessable income (including reportable fringe benefits) of between $30,342 and $60,341.
For individuals on $60,342 per annum and above no co-contribution is available. Remember that if you make Salary Sacrifice contributions, your assessable income is reduced. If you are now below $60,342 your personal contributions may earn you a co-contribution.
For example, if you are eligible and your total income is $46,342 a year and you make personal super contributions of $500 during the relevant year, you will be entitled to a Super Co-contribution of $700. You will receive this regardless of whether you made personal contributions of $500 or more. Contributions less than $500 would have resulted in the member's co-contribution payment being less than the maximum allowed for their income.
The table below gives an indication of the co-contribution available at various salary levels.
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If your personal super contribution is: |
| |
$1,000 |
$800 |
$500 |
$200 |
| And your income is: |
Your Superannuation Co-contribution will be: |
| $30,342 or less |
$1,500 |
$1,200 |
$750 |
$300 |
| $32,342 |
$1,400 |
$1,200 |
$750 |
$300 |
| $34,342 |
$1,300 |
$1,200 |
$750 |
$300 |
| $36,342 |
$1,200 |
$1,200 |
$750 |
$300 |
| $38,342 |
$1,100 |
$1,100 |
$750 |
$300 |
| $40,342 |
$1,000 |
$1,000 |
$750 |
$300 |
| $42,342 |
$900 |
$900 |
$750 |
$300 |
| $44,342 |
$800 |
$800 |
$750 |
$300 |
| $46,342 |
$700 |
$700 |
$700 |
$300 |
| $48,342 |
$600 |
$600 |
$600 |
$300 |
| $50,342 |
$500 |
$500 |
$500 |
$300 |
| $52,342 |
$400 |
$400 |
$400 |
$300 |
| $54,342 |
$300 |
$300 |
$300 |
$300 |
| $56,342 |
$200 |
$200 |
$200 |
$200 |
| $58,342 |
$100 |
$100 |
$100 |
$100 |
| $60,342 |
$0 |
$0 |
$0 |
$0 |
|
To calculate your maximum co-contribution use the Australian Taxation Office online calculator to work out how much co-contribution you may receive.
How do I make personal contributions to RBF?
If you are a member of RBF, you or your partner* may be able to make personal contributions into your superannuation.
Personal contributions are paid into the RBF Investment Account. The contributions can be as much or as little as you like. Payments to the RBF Investment Account can be made by:
1. Individual payments directly to RBF:
Individual payments can be made direct to RBF by cheque or cash. RBF will notify you in writing when payments are received.
2. Direct debit from your bank account:
This means that your bank or credit union will pay regular amounts from your account into superannuation. To arrange to make direct debit contributions you should complete a direct debit application form, or contact us.
Direct debit is suitable for members who want to make regular contributions to their superannuation.
3. Direct deposit from your bank or credit union:
This means that your bank or credit union will pay individual amounts from your account into your superannuation. To arrange to make direct deposit contributions you should complete an RBF deposit form or contact us. You then need to arrange for your bank or credit union to make the transfer. RBF will notify you in writing when your contribution is received.
Direct deposit is suitable for those members that want to make irregular contributions to their superannuation.
4. Salary deductions:
Voluntary contributions may be made through regular deductions from your salary. You need to contact your employer to arrange this.
Salary deduction is suitable for members who want to make regular contributions to their superannuation.
*Contributions made by your partner into your account, or by you into your partner's account, are not eligible for co-contribution payments.
When will the payment be made?
The co-contribution will not actually be paid until well into the financial year following the year the contribution is made. This is because the Australian Taxation Office has to collect information from superannuation funds about contributions. This information has to be lodged by funds by 31 October in regard to the previous financial year. The ATO also has to wait until a person has lodged their tax return before they can determine whether they are eligible.
Do I need to apply for the co-contribution?
No. If you qualify for the co-contribution paymentand have made your personal contribution, once you lodge your tax return the ATO will match your information with that provided by RBF and calculate your super co-contribution.
The information necessary to calculate eligibility is based on information obtained by the ATO from your tax returns and from information supplied by RBF on your behalf. The ATO will then pay the co-contribution direct to your RBF account.
However, you should ensure that you have supplied RBF with your tax file number to make sure that the ATO can link your personal contribution to your taxable income. If you feel that you qualify and no payment has been made, you should contact the ATO to determine why this has happened.
Where will the co-contribution be paid?
The ATO will generally pay the co-contribution to the account of the member
that has received the most contributions in the relevant year, provided that the
fund is able to accept a co-contribution. RBF is able to accept co-contributions.
In order to nominate RBF as the fund to which your co-contribution will be paid
you should complete a superannuation fund nomination form available at
http://www.ato.gov.au/super/content.asp?doc=/content/39987.htm or from RBF.
If the ATO cannot locate an appropriate account, they will write to the member requesting account details for payment of their Super Co-contribution.
Many members of State Fire Commission Superannuation Scheme and Tasmanian Ambulance Service Superannuation Scheme received letters from the ATO last year, requesting account details for payment of their Super Co-contribution. This happened because of the timing of the transfer of their schemes to RBF.
If you have not yet responded to that letter and if your Super Co-contribution payment has not been paid to your RBF Investment Account, contact the ATO. Register and login at the RBF website to check receipt of your Super Co-contributions.
The ATO can be contacted by phoning 13 10 20 or visit their website www.ato.gov.au.
How will I know if the co-contribution has been paid?
The ATO will notify you in writing of any co-contributions made into your
superannuation account. It will usually be paid into the account or fund that's
received the most contributions in the relevant year. Details of co-contributions
paid into your RBF Investment Account will be included in the twice-yearly
membership statements provided by RBF. You will also be able to view your
co-contributions online if you are a registered user. If you are not registered
to view your account details online and wish to do so simply visit the following
page and fill out the form.
https://www.rbf.com.au/rbfsecure/servlet/ShowRegisterMbr
How is the co-contribution taxed?
For taxation purposes, Super co-contributions are treated like a personal contribution out of after-tax income (undeducted contributions). They are not subject to tax when received by the superannuation fund and are not taxed as an end benefit. However, the earnings on the co-contributions will be taxed like any other earnings in the superannuation fund.
Co-contributions are treated like other contributions and are preserved in the fund until your preservation age and retire, or retire on the grounds of permanent incapacity.
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