The government super co-contribution is a scheme where the Australian government matches personal after-tax super contributions for low-to-middle income earners. It is effectively free money into your super — a 50% government match on eligible personal contributions, up to $500 per year.
How the Super Co-Contribution Works
If you are eligible, for every $1 of personal (non-concessional) super contribution you make, the government contributes 50 cents — up to a maximum co-contribution of $500 per year (requiring you to contribute $1,000).
The co-contribution is:
- Free money — no tax, no conditions beyond eligibility
- Automatically deposited into your super fund by the ATO after you lodge your tax return
- Based on your income from the prior financial year
Eligibility Criteria — FY2025–26
To receive the maximum co-contribution:
| Condition | Requirement |
|---|---|
| Income | Below the lower income threshold (~$45,400 for FY2025–26) |
| Contribution type | Personal (after-tax, non-concessional) contribution — not claimed as a tax deduction |
| Employment income | At least 10% of total income must be from employment, carrying on a business, or both |
| Age | Under 71 at end of the financial year |
| Super status | Not a temporary resident |
| TSB | Below $1.9 million |
Income Phase-Out
The co-contribution phases out as income rises above the lower threshold and cuts out completely at the upper threshold:
| Income | Maximum co-contribution |
|---|---|
| ≤ $45,400 (lower threshold) | $500 (full co-contribution) |
| $45,401 – $60,400 | Phases out proportionally |
| ≥ $60,400 (upper threshold) | $0 — no co-contribution |
Income thresholds are indexed annually — verify with the ATO for the current financial year.
How to Claim the Co-Contribution
You don’t need to apply separately. The ATO automatically calculates and pays the co-contribution after you lodge your income tax return, provided:
- Your fund reports your personal (after-tax) contribution to the ATO
- You meet all eligibility conditions
- Your tax return shows income within the eligible range
The co-contribution typically arrives in your super fund 1–2 months after lodging your return.
Maximum Benefit
Making a $1,000 personal after-tax contribution = maximum $500 government co-contribution. This is a guaranteed 50% return on your contribution — an outcome unavailable anywhere else — making it one of the most attractive super strategies available to eligible earners.
Co-Contribution vs Concessional Contributions
| Strategy | Who benefits | Mechanism | Benefit |
|---|---|---|---|
| Co-contribution | Low-middle income (<$60,400) | Government deposits 50 cents per $1 | Up to $500 free per year |
| Concessional contribution | Middle-high income (34.5%+ marginal rate) | Tax deduction reduces income tax | Tax saving on each dollar |
For those earning under $45,400, the co-contribution may provide more immediate value than a tax deduction (where the marginal rate benefit is only 6 cents in the dollar — 21% – 15%).
Related Articles
- Non-Concessional Contributions Australia
- Super Contribution Limits Australia
- Spouse Super Contributions Australia
- Retirement Investing hub
Frequently Asked Questions
Can I get the co-contribution if I salary sacrifice? No — salary sacrifice contributions are concessional, not personal after-tax contributions. To access the co-contribution, you must make personal after-tax contributions and not claim them as a tax deduction.
When does the co-contribution get paid into my super? After you lodge your annual income tax return, the ATO verifies eligibility and instructs your super fund to receive the co-contribution. This typically occurs within 1–3 months of tax return lodgement.
Is the co-contribution taxed? No. The government co-contribution is not taxed when it enters your super fund — it is not a concessional contribution and does not attract the 15% contributions tax.
This article provides general financial information only. Co-contribution thresholds change annually. Verify current figures at ato.gov.au. For advice tailored to your situation, speak with a licensed financial adviser through the ASIC financial advisers register or MoneySmart.