Lower-income earners who add $1,000 to super may get up to $500 added by the government.
The super co-contribution is one of the simplest extra-return tools in the Australian super system. If your income is below the threshold and you put $1,000 of your own money into super as a personal non-concessional contribution, the government can add up to $500 directly into your super account. There is no form to fill in; the ATO works it out after the year ends.
According to the ATO's super co-contribution page, the maximum is $500. To receive the full amount you generally need to make personal non-concessional contributions of $1,000 and have total income at or below the lower income threshold for the year. As your income rises towards the higher threshold, the entitlement reduces. Above the higher threshold, no co-contribution is paid.
| Income (total) | Your $1,000 contribution | Government co-contribution |
|---|---|---|
| At or below the lower threshold | $1,000 | Up to $500 |
| Between the lower and higher thresholds | $1,000 | Reducing as income rises |
| At or above the higher threshold | $1,000 | $0 |
The exact dollar values of the lower and higher thresholds are published by the ATO each year and the lower threshold is indexed in line with average weekly ordinary time earnings.
To be eligible for the co-contribution you must have made at least one personal non-concessional contribution to your super fund during the financial year, derive at least 10% of your total income from eligible employment or carrying on a business, be under 71 at the end of the financial year, hold a tax file number with your fund, and not have exceeded your non-concessional contributions cap. You also need to lodge an Australian tax return for the year.
You do not need to apply. After you lodge your tax return and your super fund reports your contributions to the ATO, the ATO works out your entitlement automatically and pays the co-contribution straight into your super account. If you have more than one fund, the payment generally goes to the fund that received your most recent eligible contribution. If you become ineligible later, the payment can be reversed, so accuracy in your return matters.
Disclaimer: This article is general information, not tax or financial advice. The lower and higher income thresholds change each year. Confirm the current position with the ATO and seek advice for your own circumstances.