Government co-contribution

If your income is less than $53,564 for the 2019-20 financial year, you may be eligible to receive a contribution from the government when you make contributions to your super from your after-tax pay. This is called a co-contribution.

To get the maximum co-contribution of $500 each year, you’d need to add $1,000 to your super from your after-tax pay and earn under $38,564 (for the 2019-20 financial year). The co-contribution amount decreases as your income increases until it cuts out for anyone earning over $53,564 each year.

Who’s eligible?

You’re eligible for a co-contribution if you:

  • earn less than $53,564 in the 2019-20 financial year
  • have made at least one after-tax contribution during the financial year
  • earn 10% or more of your income from eligible employment, running a business or both
  • are a permanent resident aged under 71 at the end of the financial year you make a payment in
  • lodge a tax return for the relevant financial year
  • haven't gone over your non-concessional contributions cap for the relevant financial year
  • don’t have a total super account balance of $1.6 million or more immediately before the start of the financial year in which the contribution was made.

If your income is near the threshold, a combination of before-tax income and after-tax income may suit you better. Try MoneySmart's Super contributions optimiser to explore.

You can’t get a co-contribution for contributions you claim as a tax deduction or make through salary sacrifice arrangements.

How much you will get

How much you’ll receive depends on your income. The table below will help you work it out for the 2019-20:

 Your contribution
Your incomeYour estimated co-contribution
$38,564 or less $500 $400 $250 $100
$41,564 $400 $400 $250 $100
$44,564 $300 $300 $250 $100
$47,564 $200 $200 $200 $100
$50,564 $100 $100 $100 $100
$53,564 or more $0 $0 $0 $0

How you receive your co-contribution

There's no need to apply or do any extra paperwork. If you're eligible, the government will pay the co-contribution directly into your super account after you've lodged your tax return for the financial year you made the contribution in.

For example, if you add to your super before 30 June 2020, you'll receive your government co-contribution after you've lodged your 2019-20 tax return.

What's the best way for you to make extra contributions to your super?

MoneySmart's easy Super contributions optimiser can show you.

Try it now