Government Co-Contribution

How the government co-contribution works

The government super co-contribution is a payment the ATO makes directly to your superannuation fund when you make eligible personal (after-tax, non-concessional) contributions and your income is below a threshold. It is a genuinely under-known entitlement for lower-income earners who make voluntary super contributions.

The rate and maximum

The government contributes $0.50 for every $1 of eligible personal contribution, up to a maximum of $500 per year. To receive the full $500, you need to contribute at least $1,000 of eligible personal contributions and have income at or below the lower threshold.

The income phase-out

The co-contribution phases out between the lower income threshold ($45,400 for FY2025–26 — VERIFY AT BUILD) and the upper threshold ($60,400 — VERIFY AT BUILD). Between these thresholds, the maximum co-contribution reduces linearly to nil. Above the upper threshold, no co-contribution is paid regardless of how much you contribute. These thresholds are indexed and confirmed by the ATO each year.

How the amount is determined

The co-contribution is the lesser of: (a) 50% of your eligible personal contribution, and (b) the income-based maximum. So a larger contribution only helps up to the point where 50% of it equals the income-based maximum. Contributing $1,000 when the income-based maximum is $500 gives you $500. Contributing $600 when the income-based maximum is $500 gives you $300.

Key eligibility conditions

The co-contribution calculator shows the mechanical result. Other conditions apply and are not modelled: you must be under 71 at the end of the financial year; you must have lodged a tax return; the contribution must be to a complying super fund in accumulation phase; your total super balance must be below the general transfer balance cap; and the contribution must be a personal (non-concessional) contribution — not employer contributions or salary sacrifice. Confirm eligibility with the ATO or a licensed adviser.