The super co-contribution is available to those who earn less than $60,400 per year.
You must make at least 1 personal super contribution of your own throughout the year.
If eligible, you'll receive the co-contribution automatically and don't need to apply for it.
What is the super co-contribution?
The government superannuation co-contribution is an initiative designed to give a little boost to the retirement savings of low and middle-income Australians. Eligible Australians earning below a certain amount will be entitled to have any extra personal contributions they make towards their super matched by the government. This isn't matched dollar for dollar.
Who is eligible for the government co-contribution?
To be eligible to receive the government super co-contribution you need to meet the below income test, plus all the following criteria:
At least 10% of your income needs to come from employment or from running your own business
You've made at least one personal (after-tax) contribution to your superannuation fund within the financial year
You're less than 71 years old
You're a permanent Australian resident and don't hold a temporary resident visa
You must lodge a tax return
Income eligbility test
The 2024/25 financial year income tests are:
If your annual income is less than $45,400: You're entitled to the full co-contribution of $500.
If your annual income is between $45,400 and $60,400: You're entitled to part of the government co-contribution. The contribution amount will gradually decrease the more you earn.
If you earn more than $60,400: You're not eligible for any co-contribution.
That is, you receive the maximum co-contribution of $500 if your income is equal to or less than the lower threshold ($45,400) and you make personal contributions of $1,000 into your super account. The government matches your contributions with 50c for every dollar you put in, with a potential maximum of $500 for the financial year.
Examples
To better understand this, let's explore how the co-contribution scheme works through a few fictional examples.
Example 1
Matt works as an administrative assistant with an annual salary of $36,000, and meets all eligibility requirements for a co-contribution. He contributes $40 each fortnight to his super account, totalling $1,040 in the 2024/25 financial year.
Matt is eligible for a co-contribution of $500, which the ATO will pay directly into his super account in October 2025.
Example 2
Hassan, a 45-year-old delivery driver, earns $55,000 annually and receives $7,000 in investment income from a jointly owned property. In the 2024/25 financial year, Hassan contributed $10,500 to his super account. Unfortunately, Hassan isn't eligible for a super co-contribution this year as his total income of $63,000 p.a. exceeds the maximum income threshold, which is $60,400 p.a.
How to get the government super co-contribution
If you're eligible to receive the government super co-contribution it will be applied automatically to your super account, so you don't need to do anything. The government will use your income statement from your annual tax return to calculate how much of the co-contribution you're eligible for.
The co-contribution will be applied to your super account once a year, usually around the end of the year. For example, if you made a few voluntary contributions within the financial year (ending in June), the co-contribution you're entitled to for that financial year will be added to your account in one lump sum around November or December.
You can't receive the money directly into your bank account. Once added to your super, the co-contribution can't be withdrawn until you've met a condition of release (such as when you've retired).
Once the government co-contribution is applied to your super account, you'll receive a letter or an email from the ATO confirming you've received the payment.
How to make your own voluntary super contributions
You can transfer money from your bank account into your super account at any time you like via direct debit. This is the same process as transferring money to another bank account.
The money that your employer pays towards your super (known as the super guarantee) doesn't count as a personal contribution for this scheme. Money that you salary sacrifice into your super from your pre-tax income also does not count - it needs to be a personal contribution from your post-tax income.
Our expert says: Making a personal contribution
"You don't need to make your personal contribution in one lump sum. Instead, you can make various smaller contributions throughout the year. This might be easier to manage as you can set up a direct debit for a small amount to be sent into your super each month, for example.
The government will add up your total personal contributions across the year when calculating your co-contribution amount."
Finder survey: Do Australians make additional contributions into their super fund?
Response
Female
Male
No
47.04%
40.24%
Yes
24.28%
30.28%
Source: Finder survey by Pure Profile of 1016 Australians, December 2023
Why was the Government super co-contribution scheme created?
The government super co-contribution scheme was created to help lift the super balances of Australians with lower incomes. Because the compulsory superannuation guarantee sees 11.50% of your pay directed into your super, those with higher incomes will also have higher super balances. This means Australians with lower incomes throughout their working life can retire with hundreds of thousand of dollars less, especially if they aren't making any extra contributions themselves.
To help combat this, the government designed the co-contribution initiative to not only contribute some money to the super funds of low-income earners, but to encourage low-income earners to make voluntary contributions to their super.
Expert insight
"The government co-contribution is one of my favourite super incentives as it's essentially free money. "
Founder of Grow My Money and author of Rich Woman, Poor Woman.
Do I pay tax on the co-contribution?
If you receive a co-contribution this will go directly into your super, so it won't be assessed as income when you lodge your tax return. It also won't be taxed when it's deposited into your super account.
However, the investment earnings on the money will be taxed in the same way that all your super investment earnings are taxed. This money will come out of the returns before it's applied to your super balance, so you don't need to do anything.
The first step to boosting your super balance is to make sure you're with a high-performing, low-fee super fund. You can see some of our best super fund picks to get started.
Frequently asked questions
Yes, the Australian government still offers a super co-contribution for eligible low and middle-income earners who make personal after-tax contributions to their super. The maximum government co-contribution is $500 per year.
For the 2024/25 financial year, the government co-contribution starts phasing out if your total income exceeds $45,400, with the maximum income cut-off set at $60,400.
If you're eligible for a co-contribution super payment, this will be processed automatically after you lodge your tax return. You don't need to claim it yourself.
Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio
Alison's expertise
Alison has written 638 Finder guides across topics including:
Shubham Pandey is a writer specialising in investing and superannuation with five years of experience across ANZ, Pedestrian Group, Valnet, BeInCrypto and AMBCrypto. He holds a Master’s degree in Finance with a minor in Communication and an ASIC RG 146 qualification, which ensures a solid understanding of the financial regulations that govern investment advice. See full bio
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