Co-contribution Rate

Legislation to implement the Government’s Budget Decision to reduce, on a temporary basis, the rate of co contribution from 150% to 100% has been introduced.

For 2009/10 and the following two financial years, the rate of Government Co-contribution will be 100% of the first $1,000 of eligible contributions.  The maximum Government Co-contribution will be $1,000.

For 2012/13 and 2013/14 financial years, the rate of Government Co-contribution will be 125% of the first $1,000 of eligible contributions.  Consequently, the maximum Government Co-Contribution will be $1,250.

For 2014/15 and following financial years, the Co-contribution rate will return to the 150% rate and will apply to the first $1,000 of eligible contributions.

The relevant bill is Tax Laws Amendment (2009 Budget Measures No 1) Bill, 2009.