Australia Super Co-contribution Guide

the Australian government super co-contribution (the "co-contribution scheme") for the low-income and the middle-income earners. The guide covers: the co-contribution eligibility (the "who qualifies for the super co-contribution") — the "Australian government super co-contribution" is the "matching contribution" paid by the ATO into the super fund of the eligible individual who makes the "personal after-tax (the non-concessional) contributions" to the super; the eligibility criteria: (a) the "total income" (the "assessable income plus the reportable fringe benefits plus the reportable super contributions") must be below the "lower threshold of $45,400" (the "2025-2026 year"), (b) the "personal non-concessional contributions" must be made and "not withdrawn" (the "50% minimum of the preserved contributions"), (c) the "non-concessional contributions cap" (the "$120,000 per year" or the "$360,000 under the three-year bring-forward") must not be exceeded, (d) the individual must have the "less than 10% of the total income from the employment" if the individual is the "employee" (the "the employment income test"), (e) the individual must be "under 71 years of age" at the end of the income year, (f) the individual must lodge the "tax return" and not be the "holder of the temporary visa" (the "except the NZ citizens and the permanent residents"), (g) the individual must have the "total superannuation balance below the transfer balance cap" (the "$1.9 million"); the co-contribution rates and the amounts (the "how much the government contributes") — the "maximum co-contribution" is "50 cents for each dollar" of the personal non-concessional contributions up to the "maximum co-contribution of $500" for the total income at or below the "$45,400 lower threshold"; the co-contribution reduces by "3.333 cents per dollar" of the income above the "$45,400 lower threshold" — the co-contribution phases out completely at the "$60,400 upper threshold"; the individual on the income of $50,000 making the "$1,000 personal contribution" receives the co-contribution of the "$500 minus the ($50,000 minus the $45,400) times the 0.03333 = the $500 minus the $153 = $347".

Making the Personal Contributions for the Co-contribution

Personal after-tax contributions: The "personal non-concessional (the after-tax) contributions" must be made from the "after-tax income" (the "the contributions are not claimed as the deduction"). The contributions can be made by the "direct deposit" or the "BPAY" to the super fund. The individual should check with the super fund for the "contribution reference number" and the "reporting requirements". The contributions are counted towards the "non-concessional contributions cap".
Contribution timing: The personal contributions for the co-contribution must be made "before the end of the income year" (the "30 June" for the maximum eligibility). The contributions made after the 30 June are counted for the "next income year" co-contribution. The individual can make the "multiple contributions" throughout the year — the total of the contributions is used for the co-contribution calculation.
Undeducted contributions: The personal contributions made "without claiming the tax deduction" are the "non-concessional contributions". The super fund reports the "non-concessional contributions" to the ATO through the "Member Contribution Statement (the MCS)". The contributions are allocated to the "tax-free component" of the super benefit (the "the contributions are paid from the after-tax income" and are "not taxed on the withdrawal").

For the super contributions types and the caps, see our Superannuation Guide →.

Co-contribution Claiming and the Payment Process

Automatic assessment: The ATO "automatically assesses" the co-contribution eligibility when the individual lodges the "tax return". The individual does NOT need to apply separately — the ATO uses the "tax return data" (the "income, the personal contributions reported by the super fund, the age, the residency") to calculate the co-contribution amount.
Payment to the super fund: The ATO pays the co-contribution directly to the individual's "super fund" after the "tax return is processed". The payment is typically made within "60 days" of the tax return lodgement. The individual can check the co-contribution payment through the "myGov — the ATO online services" or the "super fund account". The co-contribution is the "member contribution" and is subject to the "preservation rules" (the "cannot be withdrawn until the preservation age").
Notice of assessment details: The "notice of assessment" shows the co-contribution entitlement at the "government co-contribution" line. The individual who does not receive the co-contribution despite the eligibility should check: (a) the "personal contributions were made before the 30 June", (b) the "super fund reported the contributions correctly", (c) the "total income is below the upper threshold", (d) the "non-concessional cap was not exceeded".

For the notice of assessment and the tax return process, see our Notice of Assessment Guide →.

Co-contribution vs the Low-Income Super Tax Offset

LISTO distinction: The "Low-Income Super Tax Offset (the LISTO)" is different from the co-contribution. The LISTO is the "15% tax offset on the concessional contributions" for the low-income earners (the "income below $37,000" for the 2025-2026 year). The LISTO is "capped at $500" and is "paid automatically" into the super fund. The co-contribution is the "matching contribution on the personal after-tax contributions" (the "not the concessional contributions").
Combined benefit: The low-income individual can receive "both the LISTO and the co-contribution" in the same year. For the individual earning $30,000 and making the $1,000 personal contribution: the co-contribution at 50% = $500 (the "capped at $500"), and the LISTO on the concessional contributions at 15% = up to $500. The total government contribution can be up to "$1,000 per year" for the eligible individuals.
Strategic use: The low-income earner should consider the "salary sacrifice (the concessional)" for the LISTO and the "personal after-tax (the non-concessional)" for the co-contribution. The total contribution strategy should "not exceed the concessional cap ($30,000)" and the "non-concessional cap ($120,000)". The spouse contribution splitting can also be used to "balance the super balances".

For the Low-Income Super Tax Offset details, see our Low-Income Super Tax Offset Guide →.