Government Super Co-Contribution

To help you save for retirement, the Government has an incentive program that rewards you for making eligible personal contributions to your superannuation fund.

If your total income for the year does not exceed $45,400 in 2024-25 ( $43,445 in 2023-24), the government will match your eligible superannuation contributions by 50 cents per dollar up to a maximum of $500 pa.

Your total income for the purposes of the super co-contribution is the total of your assessable income plus your reportable fringe benefits amount plus your total reportable super contributions less your assessable first home saver released amount and, if you are carrying on a business, your allowable business deductions.

The superannuation co-contribution phases down for eligible individuals with total income between the lower and higher income thresholds. The superannuation co-contribution is tapered by a rate of 3.333 cents for each dollar of total income for the year that exceeds the lower income threshold.

The superannuation co-contribution ceases once the upper threshold is reached. The upper threshold is $15,000 above the lower threshold, making it $60,400 for the 2024-25 year ($58,445 for the 2023-24 year).

You may be eligible for the Government superannuation co-contribution if:

• you make an eligible personal superannuation contribution to a qualifying superannuation fund during the financial year,
• an eligible personal superannuation contribution is a non-concessional (after tax) contribution made to a superannuation fund. It does not include contributions that attract an income tax deduction. Other exclusions apply such as transfers from foreign superannuation funds and roll-overs.
• your total income is less than $60,400 for the 2024-25 year ($58,445 for the 2023-24 year)
• you are under 71 years old at the end of that tax year,
• you lodged an income tax return for that financial year,
• you have not held a temporary resident visa at any time during the financial year,
• you earned 10 per cent or more of your total income from running a business, being self-employed or from eligible employment or a combination of both.
• your total superannuation balance at the 30th June of the previous financial year was less than the transfer balance cap ($1.9 million for the 2024 and the 2025 years).
• your non-concessional contributions have not exceeded the non-concessional contributions cap for the year

 

1. Assuming you earn less than the upper threshold, you make a non-concessional (after-tax) contribution to your superannuation fund.
2. You lodge your tax return.
3. Within 60 days, the Government pays the co-contribution into your superannuation fund.

NOTE: Your superannuation fund cannot accept after-tax contributions, or receive co-contributions on your behalf, if you have not provided your Tax File Number (TFN) to your fund.
 

If you're looking for more information or advice about your superannuation - or any of your tax affairs - our H&R Block consultants may be able to assist. Contact us today.