Super Co-Contribution Explained: Get Up to $500 Free from the Government

The short version: The government super co-contribution is a payment made by the Australian Government into your super fund when you make personal (after-tax) contributions and your total income is below a certain threshold. For the 2025-26 financial year, if your total income is $45,400 or less, the government contributes 50 cents for every $1 you contribute, up to a maximum government co-contribution of $500 (meaning you need to contribute $1,000 to get the full $500).

The co-contribution reduces progressively for incomes between $45,400 and $60,400, reaching zero at $60,400. This is essentially free money from the government — a guaranteed 50% return on your contribution for eligible individuals. The co-contribution is paid directly to your super fund by the ATO after you lodge your tax return, typically within 60 days.

To be eligible for the super co-contribution, you must meet several criteria. Your total income must be less than $60,400 for the financial year.

You must have made one or more personal (after-tax) super contributions during the year. At least 10% of your total income must come from eligible employment, self-employment, or a combination of both. You must lodge your tax return for the relevant year.

You must not have exceeded your non-concessional contributions cap. You must be less than 71 years old at the end of the financial year. You must not hold a temporary visa at any time during the year (unless you're a New Zealand citizen).

Real talk — The income test uses your total income, which includes taxable income, reportable fringe benefits, and reportable super contributions. Part-time workers, casual employees, and low-income sole traders are common beneficiaries. Keep that in mind.

The maximum co-contribution is $500, which you receive if your total income is $45,400 or less and you make personal contributions of $1,000 or more. For income between $45,400 and $60,400, the maximum co-contribution reduces by 3.33 cents for each dollar of income above $45,400.

At $50,000 income, the maximum co-contribution is approximately $347. At $55,000, it's approximately $180. At $60,400 and above, no co-contribution is payable.

You don't need to apply for the co-contribution — the ATO calculates your entitlement automatically when you lodge your tax return and detects that personal super contributions have been made. However, you must ensure your super fund has your Tax File Number on record, as the co-contribution can't be paid without it. If you contribute less than $1,000, the co-contribution is proportionally reduced.

To trigger the co-contribution, you need to make a personal (after-tax) contribution to your super fund. This is different from salary sacrifice, which is a pre-tax contribution.

One thing people miss: You can make a personal contribution by transferring money directly to your super fund using the fund's BPAY details or direct deposit account, ensuring you include your member number as a reference. Contact your fund to confirm the correct payment method. You don't need to make the contribution as a lump sum — multiple smaller contributions throughout the year count towards the total.

Some super funds allow you to set up a regular direct debit from your bank account. The contribution must be received by your super fund before 30 June to count for that financial year. Importantly, if you intend to claim a tax deduction for personal contributions (making them concessional), those contributions don't qualify for the co-contribution — only non-concessional (after-tax) contributions qualify.

The co-contribution works well alongside other super-boosting strategies. Low-income earners may also be eligible for the Low Income Super Tax Offset (LISTO), which refunds the 15% contributions tax on concessional contributions for those with adjusted taxable income up to $37,000, providing up to $500 back into your super.

Combined, the co-contribution and LISTO can add up to $1,000 to your super balance each year for minimal out-of-pocket cost. If you're a couple and one partner earns below $40,000, the higher-earning partner can also make a spouse contribution and claim a tax offset of up to $540. These three strategies together can significantly accelerate super growth for low-income households.

Use our Super Co-Contribution Calculator to check your eligibility and see how much the government will contribute based on your income and personal contribution amount.