There are not many places in Australian life where the government will hand you money simply for looking after your own future — but the super co-contribution is one of them. If you are a low or middle-income earner and make an after-tax contribution to your super in 2025-26, the government can match 50 cents for every dollar you put in, up to a maximum payment of $500. You do not need to apply, fill in a form or chase anyone. The ATO works it out from your tax return and pays the money straight into your super fund.
The catch is that the scheme has strict income thresholds and eligibility rules, and the thresholds were indexed for 2025-26. If you are still working off last year’s numbers you could miss out — or assume you are eligible when you are not. This guide sets out the current thresholds, who qualifies, how much you can receive, and exactly what to do before 30 June to claim your $500.
How the super co-contribution works
The co-contribution is a matching payment. You make a personal non-concessional contribution — that is, a contribution from your after-tax money for which you do not claim a tax deduction — and the government tops it up. The matching rate is 50%: for every dollar of your own after-tax contribution, the government adds 50 cents, up to a maximum co-contribution of $500 per financial year.
To receive the full $500 you need to contribute at least $1,000 of your own after-tax money in the financial year. Contribute less and you get a proportionally smaller payment — for example, a $600 personal contribution attracts a $300 co-contribution (at full matching).
The crucial point: the scheme is automatic. As the ATO explains, once you lodge your tax return the ATO checks your eligibility, and if your super fund holds your tax file number (TFN) the payment is made directly into your super account. No separate application is needed.
2025-26 income thresholds and how much you get
How much the government pays depends on your total income for the financial year — which for this test means your assessable income plus reportable fringe benefits and reportable employer super contributions. The thresholds are indexed every year, so the 2025-26 figures are different from last year’s. Use the current numbers:
| Measure | 2025-26 | 2024-25 (for comparison) |
|---|---|---|
| Maximum co-contribution | $500 | $500 |
| Matching rate | 50 cents per $1 | 50 cents per $1 |
| Personal contribution needed for the full $500 | $1,000 | $1,000 |
| Lower income threshold (full $500) | $47,488 | $45,400 |
| Higher income threshold (phases out to nil) | $62,488 | $60,400 |
If your total income is $47,488 or less, you can receive the maximum co-contribution: $500 for a $1,000 personal contribution. If your total income falls between $47,488 and $62,488, your maximum entitlement reduces by 3.333 cents for every dollar your income is over the lower threshold, until it reaches nil. At $62,488 or above, no co-contribution is payable.
Worked examples make the phase-out concrete. The table below assumes a $1,000 personal contribution, which is the amount needed for the maximum payment:
| Total income | Your contribution | Co-contribution you receive |
|---|---|---|
| $40,000 | $1,000 | $500 |
| $47,488 | $1,000 | $500 |
| $50,000 | $1,000 | about $416 |
| $55,000 | $1,000 | about $250 |
| $60,000 | $1,000 | about $83 |
| $62,488 or more | $1,000 | $0 |
A common example: someone on a $50,000 salary who puts $1,000 of after-tax savings into super gets roughly $416 back from the government — a return of over 40% on the contribution, before any investment earnings. Even at a $60,000 salary the payment is worth around $83 for doing nothing more than topping up super you would ideally be building anyway.
One more detail worth knowing: the ATO will not pay a co-contribution of less than $20. If your calculated entitlement is under $20, nothing is paid.
Eligibility: the full checklist
The thresholds are only one of two income tests. The ATO sets out several conditions, and you must meet all of them for the relevant financial year:
- Made an eligible personal contribution. You must have made one or more personal non-concessional (after-tax) contributions to a complying super fund or retirement savings account during the financial year. Salary sacrifice amounts, employer contributions, spouse contributions, transfers between funds, and any contribution you claim as a tax deduction do not count.
- Pass the income threshold test. Your total income must be below the higher threshold of $62,488 for 2025-26.
- Pass the 10% employment income test. At least 10% of your total income must come from employment (as an employee for super purposes), carrying on a business, or a combination of both. Interest, rent, dividends and other investment income alone will not satisfy this test.
- Lodged a tax return. You must lodge a tax return for the relevant financial year — this is how the ATO checks your income and eligibility.
- Under 71. You must be under 71 years old at the end of the financial year in which you made the contribution (under 71 at 30 June 2026).
- Total super balance test. Your total superannuation balance must have been less than the general transfer balance cap at 30 June of the previous financial year — for 2025-26 contributions that means less than $2 million at 30 June 2025.
- Within your non-concessional cap. You must not have exceeded your non-concessional contributions cap for the financial year (currently $120,000 per year).
- Residency. You must not have held a temporary resident visa at any time during the financial year, unless you are a New Zealand citizen or hold a prescribed visa.
The ATO’s key super rates and thresholds page publishes the current thresholds each year — the lower threshold is indexed in line with average weekly ordinary time earnings (AWOTE), with the higher threshold set $15,000 above it.
How to get it: what to do before 30 June
Because there is no application form, claiming the co-contribution comes down to getting the order of operations right:
- Check your likely total income for 2025-26. Remember the test uses total income — assessable income plus reportable fringe benefits and reportable employer super contributions. Salary sacrifice amounts are added back in, so salary sacrificing can push you over the threshold and out of eligibility.
- Make an after-tax personal contribution before 30 June. Transfer money into your super fund from your bank account (most funds call this a “personal contribution” or “voluntary contribution”) — the contribution must land in the fund by 30 June 2026 to count for 2025-26.
- Do not claim a tax deduction for it. If you lodge a notice of intent to claim a deduction, the contribution becomes concessional and no longer counts towards the co-contribution.
- Make sure your fund has your TFN. Without your tax file number on file, the ATO cannot pay the co-contribution into your account.
- Lodge your 2025-26 tax return. This is the trigger: the ATO assesses your eligibility and pays the entitlement, usually within weeks to a few months of your return being processed.
A practical tip: contributing the full $1,000 maximises the government match and keeps the maths simple. If cash flow is tight, contribute what you can — the 50% match applies from the first dollar (subject to the $20 minimum payment).
How it interacts with your super guarantee and other contributions
Your employer’s super guarantee (SG) contributions do not count towards the co-contribution — only your own after-tax personal contributions do. In 2025-26 the SG rate is 12%, so a typical employee is already receiving employer contributions worth 12% of ordinary time earnings. The co-contribution sits on top of that: it is extra government money added to your personal top-up, effectively boosting it by up to 50%.
It also sits alongside the Low Income Super Tax Offset (LISTO), which is a separate scheme. If you earn $37,000 or less and your fund pays contributions tax on your concessional contributions, LISTO can refund up to $500 of that tax — you can be eligible for both schemes in the same year, because they target different types of contributions. Use our super calculator to see how your SG, personal contributions and the government co-contribution combine in your total super picture.
Frequently Asked Questions
Do I need to apply for the super co-contribution?
No. There is no application form. The ATO determines your eligibility automatically when you lodge your tax return, using contribution data reported by your fund. The payment is made directly into your super account, provided your fund holds your tax file number.
What are the income thresholds for the 2025-26 super co-contribution?
The lower income threshold is $47,488 — at or below this you can receive the maximum $500. The higher threshold is $62,488 — at or above this the entitlement is nil. Between the two, the payment reduces by 3.333 cents for each dollar of income over the lower threshold. These figures are indexed each year; do not use the old 2024-25 thresholds ($45,400 and $60,400).
Does a salary sacrifice contribution count towards the co-contribution?
No. Salary sacrifice contributions, employer SG contributions, spouse contributions and contributions you claim as a tax deduction are all excluded. Only personal after-tax (non-concessional) contributions count. Worse, reportable employer super contributions — including salary sacrifice — are added back into the “total income” used for the threshold test, so salary sacrificing can actually push you over the threshold and cost you eligibility.
When will the government pay my co-contribution?
After you lodge your 2025-26 tax return and it is processed, the ATO pays the co-contribution into your super account automatically — typically within a few weeks to a few months. If your fund does not hold your TFN, the payment cannot be made, so confirm this with your fund first.
Is the co-contribution taxed?
No contributions tax is applied to the co-contribution payment itself. It enters your fund as a non-concessional amount, and the usual preservation rules apply — it is preserved until you reach preservation age and meet a condition of release, just like your other super.
Can I get the co-contribution and claim a tax deduction for the same contribution?
No — you must choose. A contribution for which you claim a tax deduction becomes a concessional contribution and is excluded from the co-contribution scheme. If your income is low enough to be in the 0% or 19% tax bracket, the 50% government match is usually far more valuable than the deduction, but check your own situation or ask your accountant.
The bottom line
The government super co-contribution is one of the simplest deals in the Australian retirement system: put in up to $1,000 of after-tax money before 30 June 2026 and, if your total income is under $62,488 and you meet the other eligibility tests, the government adds up to $500 on top. For lower-income earners on $47,488 or less, that is a guaranteed 50% return before any investment growth — hard to beat anywhere.
The main reasons people miss out are using outdated thresholds, contributing after 30 June, accidentally claiming a deduction on the contribution, or forgetting that their fund needs their TFN. Get those right, lodge your return, and the money arrives automatically.
Want to see what the co-contribution could be worth as part of your overall retirement savings? Run the numbers with our free super calculator — then make your contribution well before the 30 June deadline so the payment clears in time for 2025-26.