Along with other superannuation reforms, the Government will also temporarily reduce the superannuation co-contribution matching rate.
The generous 150% will be reduced to 100% per cent for contributions made in 2009-10, 2010-11, and 2011-12. A maximum co-contribution of $1,000 will apply (down from $1,500).
The matching rate will rise to 125% cent for contributions made in 2012-13 and 2013-14 (a maximum co-contribution of $1,250 will apply).
To take advantage of the $1.50 co-contribution for each dollar you contribute to super, be sure to make those personal contributions into your fund before the end of the 2008-09 financial year. Keep in mind that co-contributions are income tested with the upper threshold being $60,342. Your maximum co-contribution is currently $1,500. However, you must reduce this by 5c for every dollar you earn over $30,342 up to the $60,342 ceiling.
Proposed changes will not become law until the Budget has been passed by the House of Representatives and the Senate, and signed by the Executive Council.
Article by Christie Lewis
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These changes have received royal assent.
Under this measure, the new matching rates will be:
- 100% for the 2009-10, 2010-11 and 2011-12 financial years, with a maximum co-contribution of $1,000
- 125% for the 2012-13 and 2013-14 financial years, with a maximum co-contribution of $1,250
- 150% from 2014-15 onwards, with a maximum co-contribution of $1,500.
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