If you made an eligible personal super contribution to a complying super fund or retirement savings account for which you are not claiming a deduction in your tax return, and:
you were under 71 years old on 30 June 2018, and
your taxable income for 2017-18 was less than $51,813* and
having a total superannuation balance of less than $1.6 million on 30 June of the year before the year the contributions are being made, and
having not exceeded your non-concessional contributions cap in the relevant financial year
you could be entitled to a Government co-contribution of 50% of a maximum amount of contributions of $500.
Click this link to the ATO for Key superannuation rates and thresholds.
If you do meet the age and low income conditions, you must complete item A3 in the individual return.
This worksheet is a What-if calculation and the co-contribution calculated is not included in the estimate. It is provided in order that you can advise your client of the amount of co-contribution he or she might expect the Government to deposit into their superannuation fund.
For taxpayers with a taxable income of $36,813 or less in the current year the Government will match their personal super contributions. For every dollar the taxpayer contributes the Government will put into their fund 50 cents - up to a maximum Super Co-contribution of $500 paid in the year.
To receive a co-contribution the total income (that is assessable income plus reportable fringe benefits, reportable superannuation contributions and adjustments made for Rental losses or Investment losses (including rental losses) MUST be less than the higher income threshold, $51,813.
Click this link to the ATO for information on Super co-contribution eligibility.
Although the taxpayer does not need to apply for the Super Co-contribution, when the taxpayer lodges the income tax return for the year, the item A3 labels should be completed. These amounts will pre-fill the Co-contributions What-if calculator. The ATO will use the information on the income tax return and the contribution information received from the superannuation fund or RSA to work out eligibility and automatically calculate and deposit the co-contribution to the taxpayer’s super account.
The Employment income from Salary and Wages amount is calculated by Tax and is the sum of Items 1, 2, 3, 4 and 9 (Salary or Wages income and lump sum payments from an employer including eligible termination payments, Allowances, earnings, tips, director's fees, etc., and Personal services income).
The preparer must enter the amount of the eligible personal superannuation contribution for which a deduction has not been claimed in the current year.