Government super co-contribution: up to $500 for 2026–27

Super co-contribution thresholds

The ATO indexes the lower income threshold each year in line with average weekly ordinary time earnings, and sets the higher threshold $15,000 above it.

Who is eligible for the government co-contribution

According to the ATO, you must meet all of these conditions for the income year:

• You made at least one personal non-concessional contribution to a complying super fund, and it reached the fund by 30 June.
• Your total income is less than the higher threshold ($64,293 for 2026–27).
• 10% or more of your total income comes from employment, carrying on a business, or both.
• You were under 71 at the end of the income year.
• You did not hold a temporary visa at any time in the year (New Zealand citizens and some prescribed visas are exceptions).
• You lodged your tax return for that year.
• Your total super balance was below the general transfer balance cap ($2,100,000 for 2026–27) on 30 June of the previous year, and you did not exceed your non-concessional cap ($130,000 for 2026–27).

How much co-contribution you get

The calculation has two parts. First, the government matches 50% of your personal contributions, so you need to put in $1,000 to get the maximum. Second, the maximum falls by about 3.333 cents for every dollar of total income above $49,293, reaching zero at $64,293. You receive the lower of the two. If the result is under $20, the ATO pays $20.

"Total income" for this test is assessable income plus reportable fringe benefits and reportable employer super contributions (such as salary sacrifice), minus any allowable business deductions and any first home super saver amount released to you. Business deductions are not subtracted for the separate 10% eligible income test, so a sole trader with a low profit is not penalised.

Making a contribution that counts

Only personal after-tax contributions count. Salary sacrifice and personal contributions you claim as a tax deduction are concessional contributions and do not attract the co-contribution, so don’t lodge a notice of intent to claim a deduction for money you want matched.

You can contribute in one lump sum or in small amounts through the year, using whichever payment methods your fund offers. Check your fund has your TFN, otherwise it can’t accept the payment. Contributions must reach the fund by 30 June, so allow a few business days before then.

The ATO pays most co-contributions between November and January for contributions made in the previous financial year, usually into the fund that received your personal contributions. If you have more than one fund and want it paid to a particular one, the ATO asks you to phone and nominate it before you lodge your return.

Worked examples: a sole trader and a salary sacrifice comparison

Sole trader: Ben's business brings in $68,000 and he has $14,000 of business deductions. For the threshold test his total income is $54,000, because business deductions are subtracted. For the 10% eligible income test the full $68,000 counts, so he passes easily. If he contributes $1,000 after tax before 30 June, his co-contribution for 2026–27 is $343.

Co-contribution or salary sacrifice? Someone earning $49,293 faces a marginal rate of about 34% including the Medicare levy. Salary sacrificing $1,000 saves about $335 of income tax but costs $150 in contributions tax inside the fund, a net gain of roughly $185. Contributing $1,000 after tax instead attracts $500 from the government. At this income the co-contribution is the better deal for the first $1,000; above that, or at higher incomes where the co-contribution shrinks, concessional contributions usually win. Remember both kinds of contribution count towards your caps ($32,500 concessional and $130,000 non-concessional for 2026–27).

Low income super tax offset (LISTO)

LISTO refunds the 15% contributions tax on concessional contributions (including employer super guarantee) for people with adjusted taxable income of $37,000 or less. It equals 15% of those contributions, up to $500, with a $10 minimum. You don't apply; it is paid to your fund, which must have your TFN.

Example: a part-time worker earning $31,000 receives 12% super guarantee of $3,720. 15% of that is $558, so LISTO is $500. If the same worker contributes $1,000 after tax, they also get the full $500 co-contribution, a combined $1,000 from the government for one year.

LISTO has similar conditions to the co-contribution: no temporary resident visa during the year, and at least 10% of income from employment or business.

Spouse contribution tax offset

If your spouse (married or de facto) earns little, you can contribute to their super and claim a tax offset of up to $540. The offset is 18% of the lesser of your spouse contributions and $3,000, where the $3,000 is reduced by every dollar of your spouse’s income over $37,000. It cuts out completely at $40,000.

Both of you must be Australian residents, not living apart permanently, and your spouse must be under 75, below the transfer balance cap and within their non-concessional cap. The contribution counts as your spouse’s non-concessional contribution, and you can’t claim a deduction for it. Claim the offset in your tax return.

Contributions splitting is different: it moves some of your own concessional contributions to your spouse’s account after the year ends, and does not give you an offset.

Common reasons the co-contribution is not paid

If you expected a payment and it didn’t arrive by the end of January, check these first:

• The contribution reached the fund after 30 June.
• You claimed a deduction for the contribution, turning it into a concessional contribution.
• Less than 10% of your income came from work or business (for example, mostly rent or dividends).
• You held a temporary visa during the year.
• Your fund does not have your TFN, or its trust deed says it can’t accept co-contributions (the fund must then return the payment to the ATO).
• You haven’t lodged your tax return yet.