Peter receives a part Age Pension as well as income from working part time and would like to know if he can also receive the Government super co-contribution?
Q. Peter
I am a 66 year old, currently receiving a part Age Pension and doing some sub-contract work. Would I still be eligible for the Government super bonus if I were to make a contribution to my super?
A. The good news is that neither your age nor the fact you receive a part Age Pension exclude you from making personal super contributions in order to receive the Government Co-contribution.
If you earn less than the 2016/17 lower threshold of $36,021, and make personal contributions of $1000 to your super, the Government will make a maximum contribution of $500. If you earn more than $36,021 but less than $51,021 and you choose to make non-concessional contributions to your superannuation, the Government will make a contribution, which reduces the more you earn. The following table will give you an indication of how much you may receive.
Super co-contributions for personal contributions made in 2016/17:
|
Income |
Super contributions |
|||
|
|
$1000 |
$800 |
$500 |
$200 |
|
$36,021 or less |
$500 |
$400 |
$250 |
$100 |
|
$39,021 |
$400 |
$400 |
$250 |
$100 |
|
$42,021 |
$300 |
$300 |
$250 |
$100 |
|
$45,021 |
$200 |
$200 |
$200 |
$100 |
This is a great way to give your superannuation balance a boost if you can afford to do so.
However, assuming you meet the income test, i.e. you don’t earn too much, you will have to meet the work test. The work test requires those over 65 to receive 10 per cent of their income from employment-related activities.
You can find out more about eligibility by visiting ATO.gov.au
Related articles:
Super contributions explained
How your super is taxed
