• long running

Receive up to $500 Superannuation Co-Contribution for Eligible Individuals (< 71 YO & Earning <$60,400 (24/25) / $62,488 (25/26)

1710
Receive up to $500 Superannuation Co-Contribution for Eligible Individuals (< 71 YO & Earning <$60,400 (24/25) / $62,488 (25/26)
Go to Deal
liamisred on 28/04/2025 - 20:29 ato.gov.au (1693 clicks)
Last edited 29/04/2025 - 06:48 by 2 other users

What is a super co-contribution

If you're a low or middle-income earner and make personal non-concessional (after-tax) contributions to your super fund, the government may also make a co-contribution up to a maximum of $500.

The government co-contribution you receive depends on your income and how much you contribute.
https://www.ato.gov.au/tax-rates-and-codes/key-superannuatio…

You don't need to apply for the super co-contribution. When you lodge your tax return, we will work out if you're eligible. If your super fund has your tax file number (TFN), we will pay it to your super account automatically.

The preservation rules applying to your current super entitlements also apply to the co-contribution.

Eligibility

  • No application needed — ATO assesses eligibility automatically when you lodge your tax return.
  • Eligibility based on Adjusted Taxable Income — not just taxable income after deductions.
  • Contribution must be made before the end of the financial year (30 June).
  • Must have earned income (not just investment income like dividends/capital gains).
  • have lodged your tax return for the relevant financial year
  • not hold a temporary visa at any time during the financial year (unless you're a New Zealand citizen or it was a prescribed visa under [subsection 20AA(2)] of the Superannuation (Unclaimed Money and Lost Members) Act 1999
  • Super fund must have your Tax File Number (TFN) recorded.
  • Contributions made too close to EOFY may miss eligibility if not processed in time — aim for mid-June.
    *have a total superannuation balance less than the general transfer balance cap(https://www.ato.gov.au/tax-rates-and-codes/key-superannuatio…) at the end of 30 June of the previous financial year
    *not have contributed more than your non-concessional contributions cap(https://www.ato.gov.au/individuals-and-families/super-for-in…)

Notes:

  • Returns are highly attractive — instant 50% bonus on your personal contribution, plus compounding growth inside super.

"No other investment will give an instant, guaranteed 50% return. None."

To receive the co-contribution, your total income must be less than the higher income threshold for that financial year.

Your total income

For the purpose of this test, your total income for the financial year is:

*the total of your

  • assessable income
  • reportable fringe benefits total
  • reportable employer super contributions reduced (but not below zero) by any excess concessional contributions
    minus your
  • assessable first home super saver released amount (if any)
  • allowable business deductions (relevant to businesses only).

more clear on the below post
https://au.finance.yahoo.com/news/2-weeks-left-for-aussies-t…

You can estimate how much you may receive as a co-contribution from the government using various calculators found online.

https://www.ato.gov.au/calculators-and-tools/super-co-contri…

Stolen from https://www.ozbargain.com.au/node/851997 , credit to @oziebee

Year Maximum Entitlement Lower Income Threshold Higher Income Threshold
2025–26 $500 $47,488 $62,488
2024–25 $500 $45,400 $60,400
Financial Superannuation

Related Stores

Australian Taxation Office
Australian Taxation Office

Comments

  • Buddy195 on 28/04/2025 - 20:40
    +32

    Shouldn’t you include what the thresholds are?

    • noisymime on 28/04/2025 - 22:45
      +4

      Keep in mind that it's not just a simple threshold, the co-contribution scales back for every dollar you earn over $45,400.

      Technically the upper threshold is $60,399, but the very most they will co-contribute if you earn that much is $20.

  • PappaLuigi on 28/04/2025 - 20:40
    +7

    its like $61,000 or something

    • noisymime on 28/04/2025 - 22:04

      Call me Mr Jaded, but if you earn $61,000 then you've already paid $300 tax on an eligible $1000 super contribution. Really this is only a $200 co-contribution with the rest being just them giving you some tax relief.

      • cheekymonkey97 on 28/04/2025 - 22:14

        Where are you getting these numbers from because they sound wrong.

        • noisymime on 28/04/2025 - 22:30

          Actually my numbers were wrong, it's even worse than what I put in.

          If you make $60,399, which is the limit, and you contribute $1000 post tax (So you've already paid ~$400 tax in order to have this $1000 because your tax bracket is 30%) then the co-contribution will be all of $20. You'd be MUCH better off if you made a pre-tax contribution to super than this.

          • Mavstrong on 28/04/2025 - 22:50
            +9

            @noisymime: If you're looking for ROI, just put $1 eligible contributions in, and still get that $20 co-contribution.

          • Slo20 on 29/04/2025 - 07:36
            -1

            @noisymime: In multiple comments you keep suggesting someone earning $60k is paying 30% tax. This is incorrect, they are in the 30% tax bracket for a portion of their income but their total tax rate is closer to 15%.

            • noisymime on 29/04/2025 - 08:27

              @Slo20: Sure, but 'last' $1000 they make would be at 30%. It's a valid comparison because the alternative is to salary sacrifice the $1000, which would be reducing from a base of 30% (To 15%)

              • Slo20 on 29/04/2025 - 10:18

                @noisymime:

                but ‘last’ $1000 they make would be at 30%.

                Based on that logic if you did the contribution in July each year then it’s based on 0% tax rate.

                • noisymime on 29/04/2025 - 10:38
                  +1

                  @Slo20: It's a pretty basic accounting concept. When you reduce your taxable income, it ALWAYS comes off your highest tax rate or the 'last' amount you earn in the FY.

                  I'm not sure how to explain it any more simply.

                  • Slo20 on 29/04/2025 - 12:47
                    -2

                    @noisymime: We aren’t talking about reducing your taxable income as we are talking about a post tax contribution.

                    Clearly we aren’t on the same page so I’ll just leave it at that.

                    • noisymime on 29/04/2025 - 20:44

                      @Slo20:

                      We aren’t talking about reducing your taxable income as we are talking about a post tax contribution.

                      I was talking about it, in multiple comments. Anyone even remotely considering this co-contribution offer should be thinking about whether it's better than doing a pre-tax addition to super, which is why I mentioned it.

                      If you do a pre-tax contribution, it will ALWAYS come off your highest bracket, hence why my comments about the 30% are the relevant ones and average tax rate is not.

            • A-mak on 29/04/2025 - 19:19
              -1

              @Slo20: down voted for explaining how tax bracket works, geeze.

              Big accounting is out to get you.

        • noisymime on 28/04/2025 - 22:39
          +2

          If you make a superannuation contribution voluntarily of $500 for matched funds, it is taxed at 15% = $75 tax then you get $500 = So your $500 receives $425 from the government net … that's a good deal.

          The co-contribution is at MOST 50% of what you put in and it scales down for every dollar over $45,400 you earn. To get the full $500 back, you have to contribute $1000 after tax and be earning $45,400 or less. Once you get to income of about $51k, you would be better off doing a pre-tax super contribution because the tax you'd have paid would be much higher (30% vs 16%) and the co-contribution would have scaled back to just $313.

          However you should really do this from the pre-tax income so it is isn't.

          This co-contribution is to after tax amounts only. You can't claim this on salary sacrificed or other pre-tax contributions.

          • MrFrugalSpend on 28/04/2025 - 23:43

            @noisymime: oh well that's sh!te - I guess we are all jaded by the Government pretending to give us things that we already have

        • Trysaeder on 28/04/2025 - 22:39
          +2

          The $1000 that you contribute must be non-concessional. This means you have paid tax on it, and will not claim a deduction for it.

          The $500 co-contribution is not taxed.

          For $1428 pay, you will take home $1000 after 30% marginal tax, then contribute $1000 to your super, which will not be taxed as it enters your super account since you have already paid tax on that money. If it was a concessional contribution like salary sacrifice, this would be taxed at 15% as it enters the super account. Your super balance will increase by the full $1500.

        • Mavstrong on 28/04/2025 - 22:45

          Pre-tax (salary sacrifice) contributions are not eligible for the co-contribution.

  • freeb1e4me on 28/04/2025 - 20:47
    +5

    Coming up Spouse Super Contribution

    • serpserpserp on 28/04/2025 - 21:45
      +7

      Stay at home Dad contribution

    • theknight27 on 29/04/2025 - 11:22

      Silly question, do they look at your partners income when determining assessable income? Or is it the same tests as used from income tax?

      • Mavstrong on 29/04/2025 - 12:30

        Nope, not for this.

  • Sadess57 on 28/04/2025 - 20:47
    +10

    Great idea for a post! Full benefit if you earn under $45,400, partial up to $62,488. See below:

    https://www.ato.gov.au/tax-rates-and-codes/key-superannuatio…

    • Chris T on 28/04/2025 - 21:17

      Umm, that table says that for the current financial year the lower threshold is $45,400, and the upper threshold is $60,400.

  • StarPlatinum on 28/04/2025 - 21:11
    +2

    I did this last year would i be able to do it again?

    • Turd on 28/04/2025 - 21:16
      +2

      I think so

    • Chris T on 28/04/2025 - 21:24
      +3

      Whether or not you made a super co-contribution in the previous financial year should not affect your eligibility to make a super co-contribution in the current financial year.

      • StarPlatinum on 28/04/2025 - 21:25

        thnaks might put a youth allowance payment in and get the 500 co payment

        • seanbaussie on 28/04/2025 - 22:05
          +1

          You probably need to check if youth allowance is considered a wage as this asks about whether you had wage income.

          • StarPlatinum on 29/04/2025 - 04:55
            +2

            @seanbaussie: Youth allowance is considered a wage cause they do tax it . Also have a part time job so I think should be okay

            • mrtin on 29/04/2025 - 09:34

              @StarPlatinum: need to check the other test- 10% eligible income test. Youth allowance probably isn't considered eligible income.

      • Chris T on 28/04/2025 - 21:33
        +2

        Sorry, I should have worded that as "received a super co-contribution", not "made a super co-contribution".

  • keji on 28/04/2025 - 21:18
    -8

    $60,400 is the cap. Government only supporting if you're a student or on the poverty line. Good initiative for those (even though they can't reap any benefits until 68 but not applicable to the average OzBargainer.

    • cook99 on 28/04/2025 - 21:26
      +20

      Average Ozbargainer makes over the cap on Boost mobile sim cashbacks

      • Grey 13 on 28/04/2025 - 21:27
        +5

        Don't forget 105% cashback on VPN deals too!

      • truetypezk on 28/04/2025 - 21:36
        +3

        Cashbacks and discounts are unlikely to be considered as income though so you are still good.

    • mskeggs on 28/04/2025 - 21:44
      +3

      Why would we want to give extra money for people earning more than a low amount?
      Also, the money will be accessible at 60yro unless regulations change. 67 is the age for the age pension.
      If you are a young person or part time worker it is a good way to get early super balances starting well.

      • keji on 28/04/2025 - 21:48

        Difference between $60,000 and $65,000 is marginal. Besides, I'm not upset about this. Glad that the tax I'm paying is incentivising those who earn less and need it more, to invest for their future.

    • Buckers on 30/04/2025 - 07:08

      FYI voluntary super contributions like this, including the gov contribution part, can be used by first home buyers.

      More details here: https://www.industrysuper.com/understand-super/money-managem…. future. More details here:

  • mrvaluepack on 28/04/2025 - 21:30
    +8

    With all the latest front-page deals, I feel like this site is slowly becoming OzServicesAustralia….

    • liamisred on 28/04/2025 - 21:49
      +13

      Plenty of people have no idea even if you do and there's alot of way less useful sh1t posted

      • mrvaluepack on 28/04/2025 - 21:51

        Should I start posting Family Tax Benefit Part A & B benefits and eligibility as well?

        • liamisred on 28/04/2025 - 21:52

          Go ahead but I wouldn't say it's worth your time given that's a much more well known scheme.

        • soan papdi on 28/04/2025 - 23:10
          +4

          Do you earn less than $115,000 and love to have unprotected sex with your partner? Here’s a great deal!

  • djkelly69 on 28/04/2025 - 21:31
    +2

    Maybe I have become too bourgeois, but $60,400 doesn't really seem like a 'middle-income earner' to me.

    • mskeggs on 28/04/2025 - 21:48
      +2

      It is the bottom third of full time income earners, but many, many people don’t work full time and would qualify.

  • braddsey on 28/04/2025 - 21:33
    +14

    both teenage kids got part-time jobs this year. made a deal with them - they add $500, I'll add $500, government will add $500. Hopefully by the time they need to really understand super they'll have a bit growing already.

    • truetypezk on 28/04/2025 - 21:39

      Not sure if you can do this with really young kids (under the general legal age to work, such as models/performers)

      • freeb1e4me on 28/04/2025 - 22:29

        I can’t remember the details but you have to be working x amount of hours to qualify

        • braddsey on 28/04/2025 - 22:54
          +3

          If a person under-18 works over 30-hours a week, then the employer must make super guarantee payments.
          This is not related to the super co-contribution, which is based on a personal super contribution.

      • braddsey on 28/04/2025 - 22:49

        At least 10% of the child’s income must come from employment. The child must submit a tax return. The contribution must come from the child (not a contribution on behalf of the child from another person).

        Regarding employment, the child needs to be able to show they were genuinely employed (timesheets, payslips, work diary etc).
        There is no age limit to my understanding, as long as the child can show proof of genuine income. Modelling, acting, working for the family business all would apply.

        • truetypezk on 29/04/2025 - 01:32

          It is an automatic process without the taxpayer having to submit an application, other than their tax return. I don't think there would even be an avenue to "show proof" or provide how many hours have been worked.
          That 10% rule is purely decided by the info in your tax return too.

          • braddsey on 29/04/2025 - 10:00

            @truetypezk: I tend to agree, the ATO is unlikely to investigate at individual child and require they show proof. I can imagine a situation however, where a small business owner contributes $1000 to their 3 children’s super accounts to obtain the $500 co-contribution. Now if said small business owner was also making high tax deductions in an area that was one of the focuses of the ATO and got investigated, then the ATO may look at payments to children. If there wasn’t sufficient “proof” that the child had actually done any work for the business, then the ATO may re-claim the co-contribution.
            (Note i have zero knowledge of the inner workings or reach of the ATO).

            It doesn’t take much effort to create and maintain a work diary.

    • 2esc on 29/04/2025 - 09:22
      +3

      Im doing this with my kids too it will make a significantly bigger difference for them in the long run.

      Superannuation was not something i thought about till my 30s.

  • Poor Ass on 28/04/2025 - 21:33

    Don't think this should be in the deals section

    • liamisred on 28/04/2025 - 21:50

      Pretty slow OzB week, why not

  • Doyen on 28/04/2025 - 21:36

    I am waiting for the FTB Part A deal. I can't find it on OzB. Only need to have 14 children you can get the median household income.

    • cook99 on 28/04/2025 - 21:41
      +13

      Elon has entered the chat

    • Poor Ass on 28/04/2025 - 23:02

      Need the tax deductions or salary sacrifice items that don't trigger a RFBA below $65,189 hee

  • tqqq on 28/04/2025 - 21:42

    I will be getting 10k out of my super soon due to financial hardship can I do this and get an extra $500 out alongside my original amount?

    • mskeggs on 28/04/2025 - 21:50
      +4

      Somebody negged you, but I think the actual answer is yes. bear in mind if you are making $1000 voluntary payments is might undertake your case for hardship.

    • mrtin on 29/04/2025 - 09:37

      the 500 isn't paid until the following financial year i believe (after you do your tax for the year)

  • tenpercent on 28/04/2025 - 21:52
    -1

    Big shout out and thanks to former Prime Minister John Howard (Liberal Party) for this initiative all the way back since 2003.

    • liamisred on 28/04/2025 - 21:54
      -1

      it's a meh scheme but better than nothing and but admittedly long term pretty okay if the Liberal Party stop causing climate change and negging long term returns

      • Chmmr on 28/04/2025 - 22:06
        -2

        Lol

        • liamisred on 28/04/2025 - 22:07
          +3

          It's a big problem, what's the point in investing in the future if the current plan is to fcuk the planet (and by extension ASX200 returns?)

          • tenpercent on 29/04/2025 - 09:43

            @liamisred: Big corporations will fcuk the planet and the people over, but it's got nothing to do with the weather or climate. Using forever chemicals, PVC, bisphenols, ignoring the legacy lead problem. Suppressing wages in the West. Suppressing workers rights in the Global South. Buying politicians of every flavour. Lobbying for corporate welfare. Avoiding tax by fiddling with their books to shift revenues offshore.

    • Techie4066 on 28/04/2025 - 23:42
      +5

      Our analysis of taxation data since 2000 suggests the scheme has made little difference to lifting voluntary super contributions by low and middle-income earners.

      Most significantly, our findings indicate the scheme does little more than provide a bonus to those who would have put money into super anyway.

      […] The biggest increases in contributions were by high-income earners who happened to qualify in a particular year due to a temporary drop in income, as well by partnered women.

      Those normally in the top 25% of income earners were four times more likely to take advantage of the scheme than those normally in the bottom 25%.

      Source

      • braddsey on 29/04/2025 - 10:28

        I think the scheme still serves a good purpose for young people.
        For young people without financial commitments it is a good tool to educate about the benefits of super, and encourage good saving habits. Perhaps obviously it typically takes educated parents who know about super and this scheme to educate along the way.

        For older people winding down a career it’s a very small encouragement to add to super, but unlikely to move the needle… and these people are probably already financially stable and not in need of a small additional contribution (though appreciate it regardless).

        People who are genuinely surviving on low incomes can’t benefit as they simply cannot afford to lock away $1000 - they need every dollar to survive. The government should be helping them out in other ways.

        • Techie4066 on 29/04/2025 - 10:40

          Yes as a young person I use it only because I happened to do my own research. Unfortunately the bulk of the $10bn spent on the scheme has not provided value for money from the perspective of equity and government policy. It's yet another ill-thought out Howard hangover.

    • DrScavenger on 29/04/2025 - 04:03

      If only libs have kept the low and middle tax offset too

  • JLGood on 28/04/2025 - 21:58
    +1

    I did this last year, but didn't get the co-contribution. I earnt under the threshold, made the contribution well before the EOFY, and submitted my tax return. Why wouldn't I have got it?

    • Mavstrong on 28/04/2025 - 22:19
      +1

      Did you also claim a deduction for that contribution? (That would make it not eligible for a co-contribution.)

      I'd check with your fund that they have your contribution recorded as being received last financial year, if they have, give the ATO a call (I think 131020 is the super line) and they can tell you what's going on.

      • JLGood on 30/04/2025 - 16:26

        Bugger, looks like I did this. Stupid mistake. Would there be any point following this up given it was last year?

        • Mavstrong on 30/04/2025 - 17:25

          Depends what's best for your personal circumstances…

          You can amend your tax return, take out that deduction, which could get you the co-contribution - but you also might have an increase in tax (from the reduced deduction).

          Worth keeping in mind if you do do that (reduce your deduction) you'll then want to lodge a variation notice - varying your notice of intent (to claim a deduction) - with your fund, reducing it by the amount you're reducing your deduction. (You fund will tax any amounts covered by a notice at 15%, so if you're not claiming a deduction and you don't vary that amount down, you'll be paying tax twice on the one amount.)

          Hopefully that all makes sense …

          Edit - also there are time limits for being able to amend those fund notices, so you'd want to check that also.

    • braddsey on 28/04/2025 - 23:09

      The contribution needs to be non-concessional - i.e. after tax. If you made a concessional contribution - like a salary sacrifice through your employer, then it’s not eligible.

      Check with your superfund that you made the contribution using the correct code so it gets recorded properly.

    • truetypezk on 29/04/2025 - 01:36

      Are your earned incomes on a payment summary? I think ATO's system might have a bug regarding earned incomes NOT on a payment summary. It might led them to beliebe you did not satisfy the 10% eligible income test.

    • Poor Ass on 29/04/2025 - 09:52
      +1

      there's lots of factors to consider

      e.g. need to be be less than 71, under the income threshold, need 10% of the income to be employment or business income and not investment income and you actually need to select that you have made a contribution and seeking the co-contribution on the tax return

      • braddsey on 29/04/2025 - 10:11

        Can you elaborate on this? Is there a checkbox on the ITR form or something like that?
        (I use an accountant for my ITR so haven’t personally prepared or submitted one for a long time).

        • Poor Ass on 29/04/2025 - 10:21
          +1

          depends if your accountant ask the right questions… I'm sure if they are good they will ask if you done any personal super contributions and if you have any intention to deduct or get gov co-contribution

          But not everyone qualifies…. need to be eligible

          When lodged end of Oct you get it around Dec

          there's a section under adjustment or maybe offset that has Government Super Contributions once you click it it will ask if you:

          Should I complete this item?
          Complete this item if:

          you made an eligible personal super contribution (for which you are not claiming a deduction) and some of your income was from employment or business, you did not exceed your non-concessional contributions cap and your total superannuation balance at 30 June 202X was less than $1,700,000, or
          concessional contributions have been made to your super fund, and some of your income was from employment or business.

          • braddsey on 29/04/2025 - 10:31

            @Poor Ass: Thanks. I guess i’ll learn about it when i “help” my kids submit their first tax returns later this year.
            Good to have a heads-up of what to look out for.

            • Poor Ass on 29/04/2025 - 10:48

              @braddsey: dunno how old ya kids are but I doubt they will be putting $1k in to get the $500 which they probably won't reap the benefits after 50+ years

              • braddsey on 29/04/2025 - 14:45

                @Poor Ass: My kids are 15 & 17, both have part-time jobs.
                We’ve made a deal with them - they contribute $500 and we’ll match it.
                We’ve been through compound interest, shown them that if invested correctly the $1500 they will have in super should compound to about $50K by the time they get to retirement (assuming it doubles every 10 years).
                Will repeat every year they are low income and the co-contribution is available.

                They could equally afford to contribute the $1K themselves. 2 shifts at Macca’s is about $100/week (tax free because low income). $20 of this to super leaves $80/week.
                Kids live at home and go to school - they can absolutely afford it.

                I don’t know how old you are, but making very small financial sacrifices when young will mean later in life when they have financial commitments, then they need not worry about their super.

                • Poor Ass on 29/04/2025 - 15:52

                  @braddsey: Yeah I think I've done one better

                  I opened up a super account for them when they were born and chucked $50,000 non concessional contribution on aggressive growth

                  By the time they are 25 they would not be eligible to use the carry forward rule as the account balance would be more than 500k and by 32 the balance would at lease be $1m

                  yes I know I know username doesn't check it

                  • braddsey on 29/04/2025 - 18:09

                    @Poor Ass: Well played - they will likely pay more tax as a result (though when you've got a nest egg like that, it's a price worth paying).

                    Smart move for your kids would be to look at building non-super assets. Clearly there's no point in making additional super contributions, so build assets from which they can derive a passive income (once they sort out housing, life, etc).

                    • Poor Ass on 29/04/2025 - 18:37

                      @braddsey: What do you mean pay more tax as a result?

                      • braddsey on 29/04/2025 - 19:26

                        @Poor Ass: This is probably the wrong statement - and in this instance it's not necessarily a bad thing. The "additional tax" I was referring is related to the Division 296 Bill, which will impose an additional 15% tax on super earnings where the total super balance is over $3m. It has not yet passed into law, but I guess they will keep working on it.
                        Additionally, most people use salary sacrifice super contributions as a way to minimize tax. however for your kids, there will be no point taking this path as they will already have so much super by the time they reach retirement age… so they'll need to look for other ways to minimize tax. As above (and it's their life and this is all decades away), but I would be looking at investments outside super that allows them to lead a more comfortable life before they reach retirement.
                        I would be looking to build income producing assets outside super in order to build a passive income stream before retirement. Allow them to retire early and enjoy life (assuming life progresses well for them).

                        The flipside is if you had invested the $50K outside super, then you would be paying a higher tax rate on it than is paid in the super account anyway.

                        The reality is paying a bit more tax here essentially a problem of having a lot of money - so not a bad thing! :)

                        Edit: I don't work in finance or retirement planning or anything like that… just at an age where I'm taking a lot of interest!

                        • Poor Ass on 29/04/2025 - 19:40
                          +1

                          @braddsey:

                          Edit: I don't work in finance or retirement planning or anything like that… just at an age where I'm taking a lot of interest!

                          good thing I do :)

                          not worried about 296 more worried about 293

                          next step will do SMSF and then buy a commercial property with it and then will start a new business using that premises and pay rent to the SMSF and repeat. Sell off commercial property at preservation age while capital gains free or maybe 15-year exemption and do something else.

  • plmko on 28/04/2025 - 21:59
    +1

    Remember to check your statements. They will conveniently forget to pay it.

    • Mavstrong on 28/04/2025 - 22:21

      Who's forgetting to pay? The ATO?

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