Super Co-Contribution — How the Government Tops Up Your Super

The superannuation co-contribution is a government scheme that automatically adds money to your super when you make personal after-tax contributions and your income falls below the upper threshold. For every $1 of eligible personal contributions you make, the government contributes 50 cents — up to a maximum of $500 per year.

No application is required. Lodge your tax return with eligible contributions reported, and the ATO automatically calculates and deposits the co-contribution directly into your super fund.

How the Co-Contribution Works

The co-contribution rate is 50 cents for every $1 of personal after-tax contributions, up to a maximum government contribution of $500. To receive the full $500, you need to contribute at least $1,000 of eligible personal contributions and your income must be at or below the lower income threshold.

The co-contribution phases out between the lower and upper income thresholds — the amount reduces gradually until it reaches zero at the upper threshold.

FY2025–26 Co-Contribution Thresholds

Note: These thresholds are indexed to AWOTE annually. Confirm current-year figures with the ATO before making contributions.

How the Phase-Out Works

If your income falls between the two thresholds, your co-contribution is reduced proportionally. The formula the ATO uses is:

Co-contribution = (Personal contributions × 0.50) × (1 − ((income − lower threshold) ÷ 15,000))

In plain terms: for every $1 your income exceeds the lower threshold, your maximum co-contribution reduces by about $3.33 cents (i.e., the $500 maximum reduces to $0 over a $15,000 income range).

Worked Examples

Eligibility Requirements

To receive the co-contribution, you must meet all of the following criteria in the financial year:

• Make one or more personal after-tax contributions to a complying super fund or RSA
• Have at least 10% of your total income from eligible employment or self-employment (i.e. you cannot be purely a passive investor)
• Be under age 71 at the end of the financial year
• Have a total super balance below $1.9 million at 30 June of the prior year (from FY2021–22 — previously $1.6 million)
• Not hold a temporary visa at any time during the year (with some exceptions for certain visa holders)
• Lodge a tax return for the financial year
• Have a tax file number (TFN) lodged with your super fund

You do not need to earn below the lower income threshold to be eligible — you just need to earn below the upper threshold. If you earn between $45,400 and $60,400, you will receive a partial co-contribution.

What Counts as “Income” for the Thresholds?

The income figure used is your total income for co-contribution purposes, which the ATO defines as:

• Taxable income
• Plus reportable fringe benefits
• Plus total net investment loss (losses added back)
• Plus reportable employer super contributions (including salary sacrifice)

This means salary sacrifice super contributions count toward your income for threshold purposes, even though they reduce your taxable income.

What Contributions Are Eligible?

The co-contribution only applies to personal after-tax contributions — money you transfer from your own bank account into super, from income you’ve already paid tax on.

Eligible

• Personal after-tax contributions to a complying super fund or RSA

Not Eligible

• Employer SG contributions
• Salary sacrifice contributions (pre-tax)
• Spouse contributions made into your account
• Contributions for which you claim a tax deduction (these become concessional — claiming a deduction cancels eligibility for co-contribution on that amount)
• Rollover amounts between funds

Important: If you make a personal contribution and then lodge a Notice of Intent to Claim a Deduction for it, that contribution is reclassified as concessional and becomes ineligible for the co-contribution. You cannot receive both the tax deduction and the co-contribution on the same dollars.

How to Receive the Co-Contribution — No Action Required

The co-contribution is automatically paid. The process is:

1. You make eligible personal after-tax contributions to your super fund during the financial year
2. Your super fund reports the contributions to the ATO
3. You lodge your tax return (reporting your income and the contributions)
4. The ATO calculates your co-contribution entitlement automatically
5. The ATO deposits the co-contribution directly into your super fund — typically within several weeks of your tax return being processed

You do not need to apply, fill out a form, or contact the ATO. You do need to lodge your tax return — the co-contribution cannot be paid without it.

If you have multiple super funds, the ATO will deposit the co-contribution into the fund that received your personal contributions. If contributions went to multiple funds, the ATO will direct the payment to one of them.

Co-Contribution and the Non-Concessional Cap

Co-contribution payments made by the government do not count toward your non-concessional contributions cap. They are a separate government payment and do not affect your $120,000 NCC limit.

The personal contributions you made that triggered the co-contribution do count toward your NCC cap — but for most people receiving the co-contribution (income under $60,400), the standard $120,000 NCC cap is unlikely to be a concern.

Is the Co-Contribution Worth It?

For eligible Australians, the co-contribution is effectively a 50% return on personal contributions up to $1,000 — achieved instantly, before any investment return. That is a very high guaranteed return with no risk.

The main trade-off is that after-tax contributions do not reduce your current tax bill (unlike salary sacrifice or personal deductible contributions). However, for low-to-middle income earners who have already maximised or cannot access concessional contributions — or who are below the income tax threshold — after-tax contributions with the co-contribution can still be a very efficient use of savings.

For anyone earning under $45,400 who can afford to contribute $1,000 to super, the government co-contribution is among the most straightforward super benefits available.

Frequently Asked Questions

Can I receive the co-contribution if I’m self-employed? Yes, provided at least 10% of your total income for the year is from eligible employment or self-employment activity. Self-employed individuals who make personal after-tax contributions and meet the income thresholds are eligible. They cannot claim a tax deduction on the same contributions they want co-contributed.

What if my super fund doesn’t receive the co-contribution? If the co-contribution hasn’t appeared within a few months of lodging your tax return, check that your TFN is registered with your fund and that your fund has reported your contributions to the ATO. You can contact the ATO (13 10 20) or check your myGov account for the status of any co-contribution.

Can I receive the co-contribution and the LISTO (Low Income Super Tax Offset) in the same year? Yes. The co-contribution and the LISTO are separate government benefits with separate eligibility criteria and income thresholds. The LISTO refunds the 15% contributions tax on concessional contributions for those earning under $37,000. The co-contribution applies to after-tax contributions. A low-income earner who makes both concessional and personal after-tax contributions may be eligible for both in the same year.

Is there a minimum contribution to receive any co-contribution? There is no legislated minimum — technically any eligible personal contribution above $0 generates a co-contribution. However, the minimum you would need to contribute to receive the full $500 maximum is $1,000.

Does the co-contribution affect Age Pension or Centrelink entitlements? The co-contribution goes into your super fund and increases your super balance. For people below Age Pension age, super in accumulation phase is generally exempt from the Age Pension assets and income tests. The co-contribution itself is not treated as income. However, once you reach Age Pension age, super balances are included in the assets and income tests. The impact depends on your individual circumstances — for specific questions about Centrelink, contact Services Australia directly.

See also: Super Contributions. For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.