There aren’t many places in the financial system where the government simply hands you money for saving. The superannuation co-contribution is one of them. If you’re a lower or middle income earner and you put some of your own after-tax money into super, the government can chip in up to $500 on top — no application, no paperwork, just a payment straight into your super account after you lodge your tax return.
Yet every year, hundreds of thousands of eligible Australians miss out, usually for one simple reason: they made the wrong type of contribution, or didn’t contribute at all. This guide explains exactly how the co-contribution works, who qualifies, how much you can get, and the mistakes that cause people to leave free money on the table.
What Is the Government Super Co-Contribution?
The super co-contribution is a government initiative and government co contribution scheme for low to middle income earners in Australia, with the co contribution scheme aimed at people on low or middle income who want to grow retirement savings. When you make a personal after-tax (non-concessional) contribution to your super, the superannuation co contribution scheme is designed to enhance retirement savings and help middle income earners boost super savings, with the government matching part of it — paying 50 cents for every $1 you contribute, up to a maximum of $500 per year.
Put simply: contribute $1,000 of your own after-tax money, and if you’re eligible on income, the government adds $500. That means you can add to your super through the government co contribution scheme with a co contribution amount of $500 on a $1,000 contribution — an instant, guaranteed 50% return before investment earnings.
The payment is tax-free, it’s preserved in super until you can access it, and crucially, you don’t need to apply. The Australian Taxation Office (Australian Taxation Office ATO) assesses your eligibility from your tax return and your fund’s contribution records, then can automatically pay the amount into your super account automatically.
How Much Can You Get?
The amount depends on two things: how much you contribute, and how much you earn.
Contribute $1,000 or more after tax and earn at or below the lower income threshold, and you receive the full $500.
Contribute less than $1,000, and you get 50% of whatever you contributed (contribute $600, get $300).
Earn between the lower and upper thresholds, and your maximum entitlement tapers down.
Earn above the upper threshold, and you get nothing.
The income thresholds (2026–27 financial year):
Lower threshold: $49,293 — earn at or below this and you can receive the full $500 (if you contribute $1,000).
Upper threshold: $64,293 — earn at or above this and you’re not eligible at all.
This income threshold test determines whether you receive the full amount, a reduced amount, or none. In 2024–25, income below $45,400 qualified for the maximum co contribution.
Between those two figures, your maximum co-contribution reduces by 3.333 cents for every dollar your income exceeds the lower threshold. In 2024–25, the co contribution paid reduced as income approached $60,400, which was the higher income threshold.
(For the previous 2025–26 year, the thresholds were $47,488 and $62,488, and eligibility required income under $62,488 for that financial year. These figures are indexed each year, with the new amounts generally confirmed in February, so always check the current year’s numbers before contributing.)
The formula: Maximum co-contribution = $500 − [3.333% × (Your income − lower threshold)] If the calculated entitlement is very small, the minimum co-contribution payment is $20.
Worked Examples
Example 1 — Full entitlement. Sarah earns $45,000 and contributes $1,000 of her own after-tax money into super. She’s below the lower threshold, so she receives the full $500. Her $1,000 becomes $1,500 — a 50% boost.
Example 2 — Partial entitlement. David earns $56,000, which is $6,707 above the 2026–27 lower threshold. His maximum reduces by 3.333% × $6,707 ≈ $224. So his maximum co-contribution is about $276, provided he contributes at least $1,000. If he contributes less, he’ll receive the lower of that figure or 50% of his contribution.
Example 3 — Not eligible. Priya earns $70,000. She’s above the upper threshold, so she receives no co-contribution regardless of how much she contributes. For her, salary sacrifice or a personal deductible contribution may be more effective — a different strategy entirely.
Who Is Eligible? The Full Checklist
To qualify for the co-contribution, you generally need to meet all of the following in the relevant financial year, and the income threshold test also applies when eligibility is assessed:
You made one or more personal after-tax (non-concessional) contributions to a complying super fund; these must be after tax contributions and not amounts for which you claim a tax deduction or later claim a tax deduction.
Your total income is below the upper threshold ($64,293 for 2026–27).
At least 10% of your total income comes from employment, running a business, or a combination — this is the “10% test” that stops people with purely investment income from qualifying.
You were under 71 years old at the end of the financial year.
You lodged your tax return for the year, and your super fund has your tax file number TFN so the co-contribution can be processed.
You did not hold a temporary resident visa during the year (with exceptions for New Zealand citizens and certain visa holders).
Your total super balance was below the general transfer balance cap on 30 June of the previous financial year, which means it must be below the legal limit at that date.
You did not exceed your non-concessional contributions cap in the year.
“Total income” for this test is broader than taxable income — it generally includes assessable income, reportable fringe benefits and reportable employer super contributions, less allowable business deductions. This wider definition is why some people who think they’re under the threshold are surprised to find they’re not.
The Mistake That Costs People the $500
Here is the single most common reason eligible Australians miss out: they contribute the wrong way.
The co-contribution only rewards personal after-tax (non-concessional) contributions made from your after tax pay — money you choose to use for extra contributions to add to your super, and that you do not claim a tax deduction for. It does not apply to:
Salary sacrifice contributions (these are before-tax / concessional).
Personal contributions you later claim as a tax deduction for (these become concessional and will not qualify for the co-contribution).
Employer Superannuation Guarantee contributions.
So someone who diligently salary-sacrifices into super, thinking they’re doing the right thing, gets zero co-contribution — because they used the before-tax method. To capture the government’s $500, at least some of the contribution needs to be made from after-tax money and left unclaimed as a deduction.
This is exactly the kind of detail where a quick check before 30 June can be worth $500 a year, every year.
Co-Contribution vs LISTO: Two Different Schemes
People often confuse the co-contribution with the Low Income Super Tax Offset (LISTO). They’re separate, and you can potentially benefit from both:
Co-contribution rewards you for making a voluntary after-tax contribution, up to $500, for incomes under the upper threshold.
LISTO is an automatic refund of up to $500 of the 15% contributions tax paid on your concessional (before-tax) contributions, for those earning up to $37,000. You don’t contribute anything extra to get it — it effectively refunds the tax on your employer and salary-sacrifice contributions.
In other words, LISTO gives back tax on money going in before tax; the co-contribution adds money on top of what you put in after tax. A lower income earner might receive both in the same year.
Key Deadlines
To receive a co-contribution for a given financial year, your personal after-tax contribution must reach your super fund by 30 June of that year — not merely be initiated. Payments processed through BPAY or bank transfer can take a few business days, so leaving it to the last day is risky. Then you simply lodge your tax return as normal; the Australian Taxation Office (ATO) will usually process and automatically pay the co-contribution between November and January for the previous financial year, once your return has been processed, provided your fund can accept co contributions correctly.
How Money Path Can Help
The co-contribution is one of the simplest wins in super — but only if it’s set up correctly, and only if it fits your broader picture. Getting the type of contribution wrong, misjudging the income test, or leaving it too late are all easy, costly mistakes.
At Money Path, we help you make sure you’re capturing every incentive you’re entitled to. We check whether the co-contribution suits your situation, structure your contributions the right way so the after-tax amount actually qualifies, and coordinate it with the other levers — salary sacrifice, personal deductible contributions, spouse contributions and LISTO — so you’re not accidentally choosing one strategy at the expense of a better one. For higher earners who don’t qualify, we look at the more tax-effective alternatives that achieve the same goal of building super efficiently.
Superannuation strategy is rarely about a single decision in isolation. The co-contribution is worth having, but it’s most powerful when it sits inside a contribution plan built around your income, your caps and your retirement timeline. That’s where personal advice turns a $500 win into a genuinely optimised super position.
If you’re a lower or middle income earner and want to make sure you’re not leaving free money on the table, talk to the team at Money Path before the end of the financial year.
Frequently Asked Questions
How much is the government super co-contribution? Up to $500 per financial year. The government pays 50 cents for every $1 of personal after-tax contribution you make, so contributing $1,000 gets you the maximum $500 if your income is at or below the lower threshold. The amount tapers down as income rises and cuts out entirely above the upper threshold.
Do I need to apply for the co-contribution? No. There’s no application. The Australian Taxation Office (ATO) automatically assesses your eligibility using your tax return and the contribution information reported by your super fund, then pays any co-contribution directly into your super account automatically. You just need to make an eligible after-tax contribution and lodge your tax return.
What are the income limits for 2026–27? For the 2026–27 financial year, the lower income threshold is $49,293 and the upper threshold is $64,293. Earn at or below $49,293 and you can receive the full $500; earn $64,293 or more and you’re not eligible. For 2025–26 the figures were $47,488 and $62,488. Thresholds are indexed annually.
Why didn’t I receive a co-contribution? The most common reason is contributing the wrong way — salary sacrifice contributions and personal contributions claimed as a tax deduction don’t qualify. Only personal after-tax (non-concessional) contributions count. Other reasons include earning above the upper threshold, not meeting the 10% employment income test, not lodging your tax return, your fund not having your tax file number, or your fund being unable to accept co contributions under its rules.
Does salary sacrifice count for the co-contribution? No. Salary sacrifice is a before-tax (concessional) contribution and does not qualify. To receive the co-contribution, you must make personal after tax contributions and not claim them as a deduction.
Can I get both the co-contribution and LISTO? Potentially yes. They’re separate schemes. LISTO automatically refunds up to $500 of the contributions tax on your before-tax contributions if you earn up to $37,000, while the co-contribution adds up to $500 for making an after-tax contribution. A lower income earner may qualify for both in the same year.
When do I need to contribute by? Your after-tax contribution must reach your super fund by 30 June to count for that financial year. Because electronic payments can take a few days to clear, don’t leave it until the final day. After you lodge your tax return, the co contribution paid is generally received between November and January. If you have more than one super fund, the Australian Taxation Office ATO may need the correct fund details to ensure it is paid to the right fund directly.
Is the co-contribution taxed? No. The co-contribution payment itself is tax-free when it goes into your super. Like all super, any investment earnings on it are taxed within the fund at the concessional super rate, and the money is preserved until you meet a condition of release.
This article is general information only and does not take into account your personal objectives, financial situation or needs. Super thresholds and rules are indexed and change each year; figures are current as at the date of writing for the 2026–27 financial year. Always confirm current figures with the ATO and seek personal financial advice before acting.
