Super Co Contributions: Boost Your Retirement Savings

If you are a low or middle income earner, super co contributions can be one of the simplest ways to grow your retirement savings without straining your cash flow. When you make an eligible after‑tax contribution, the government may add up to $500 to your super, automatically, once you lodge your tax return and your fund holds your TFN.

Super co contributions are often overlooked because the rules feel technical. In reality, the rules are clear and the steps are simple. This guide explains how super co contributions work, who qualifies, how much you could receive, and practical ways to use the opportunity alongside other levers like LISTO, spouse contributions, and the bring‑forward rules.

Super co contributions: what they are and how they work

Super co contributions are government top‑ups of up to $500 paid into your super when you make personal non‑concessional contributions and meet the income and eligibility tests. You do not need to apply. The ATO determines eligibility after you lodge your tax return and pays the amount straight to your super fund, provided your fund holds your TFN.

For 2025–26 the lower income threshold is $47,488 and the higher income threshold is $62,488. If your total income is at or below the lower threshold and you contribute $1,000 after tax, you receive the maximum $500. The top‑up reduces progressively to zero once your income reaches the higher threshold.

Super co contributions are preserved like other super benefits, which means you generally cannot access them until you meet a condition of release, such as retirement at the relevant preservation age.

Who qualifies for super co contributions

To receive super co contributions you must make one or more personal non‑concessional contributions in the financial year, be under 71 on 30 June of that year, satisfy both income tests, have lodged your tax return, not hold a temporary visa (with limited exceptions), have a total super balance below the general transfer balance cap as at 30 June of the previous year, and not exceed your non‑concessional contributions cap.

The income test has two parts. First, your total income must be below the higher threshold for the year. Second, at least 10 percent of total income must come from employment or business. Total income uses the ATO’s definition that includes assessable income, reportable fringe benefits and reportable employer super contributions, adjusted by specified amounts.

Your total superannuation balance affects eligibility. If your total superannuation balance is equal to or above the general transfer balance cap on 30 June of the previous year, your non‑concessional cap is nil and you will not be eligible for super co contributions in the current year.

Super co contributions and the 2025–26 thresholds

The ATO publishes an annual table of super co contributions settings. For 2025–26 the maximum entitlement is $500, the lower income threshold is $47,488 and the higher income threshold is $62,488. The thresholds are indexed to wages and typically updated in February each year.

If you are at or under the lower threshold and you contribute $1,000 after tax, your super co contributions top‑up is $500. If your income sits between the thresholds, you still receive a partial amount, reducing as income rises toward the higher threshold.

The five essential steps to capture super co contributions

Step 1: Check your total income and age
Confirm that your total income for the financial year falls under the higher threshold and that you will be under 71 on 30 June of that year. The ATO sets out the income test and the age requirement.

Step 2: Confirm your total superannuation balance and cap room
Make sure your total superannuation balance as at the prior 30 June is below the general transfer balance cap, and that you have non‑concessional cap space. The ATO explains how your total superannuation balance controls eligibility and cap room.

Step 3: Contribute the right way
Make a personal non‑concessional contribution from after‑tax money. If you instead lodge a deduction notice and claim a tax deduction, the contribution becomes concessional and will not attract super co contributions. The ATO explains deduction notices and how deductions change the contribution type.

Step 4: Ensure your fund has your TFN
The ATO pays super co contributions automatically if your fund holds your TFN and you meet the tests. If the TFN is missing, the top‑up cannot be paid into your account.

Step 5: Lodge your tax return
Eligibility is assessed after you lodge. If you meet the criteria, the payment will be credited to your super account without a separate application.

How super co contributions interact with other rules and levers

Super co contributions can be combined with the low income super tax offset (LISTO), which refunds up to $500 of contributions tax on concessional contributions for eligible low‑income earners. LISTO is separate from super co contributions, and many workers qualify for both in the same year.

The ATO has announced the Government’s intention to increase LISTO from 1 July 2027 by raising the income threshold to $45,000 and the cap to $810, though this proposal is not yet law. Planning that assumes the higher LISTO should factor in legislative risk and timing.

Super co contributions also sit alongside the concessional and non‑concessional caps. From 1 July 2024 the concessional cap is $30,000 and the non‑concessional cap is $120,000. If you exceed your non‑concessional cap or your total superannuation balance is at or above the general transfer balance cap at the prior 30 June, you will not be eligible for super co contributions.

If you are considering larger after‑tax contributions under the bring‑forward arrangement, remember that bring‑forward availability depends on your total superannuation balance at the previous 30 June and that caps can lock for the three‑year period when first triggered. The ATO’s guidance explains bring‑forward settings and how your total superannuation balance controls your access.

Strategy ideas to maximise super co contributions

Use a targeted $1,000 after‑tax contribution
If you are under the lower income threshold, a $1,000 after‑tax payment should generate the $500 maximum. This is often the most efficient way to capture the full benefit in a single transaction.

Split concessional and non‑concessional across the year
Consider salary sacrifice or deductible personal contributions up to the concessional cap for tax efficiency, then add a small after‑tax amount at year‑end to maximise super co contributions if your income and age meet the tests. The ATO explains caps and the deduction notice process.

Coordinate with LISTO
Low‑income earners can receive LISTO on concessional contributions and super co contributions on after‑tax contributions in the same year. This can effectively add up to $1,000 of government support when both entitlements are maximised.

Avoid accidental disqualification
If you intend to claim a deduction for your personal contributions, lodge the deduction notice only for the amount you want treated as concessional. Any amount you deduct will not qualify for super co contributions, so split your payments or your notice carefully. The ATO’s instructions show deadlines and validity requirements.

Check fund timing and year‑end cutoffs
A contribution counts in the year your fund receives the money. Payments close to 30 June can fall into the next year if not received in time, which could change your eligibility or the year the top‑up is assessed. The ATO highlights this timing rule within cap guidance.

Practical examples of super co contributions in action

Case 1: Single worker under the lower threshold
Maya expects total income of $45,000 in 2025–26 and contributes $1,000 after tax in April. She is under 71 on 30 June, her fund holds her TFN, and she has cap space. When she lodges her return, the ATO pays $500 into her super as super co contributions. The lower and higher thresholds confirm her eligibility and the maximum match.

Case 2: Part‑time contractor near the higher threshold
Chris will earn $61,000 this year and makes an after‑tax contribution of $1,000. Because his income is just below the higher threshold, he receives a small co‑contribution calculated under the taper between the two thresholds.

Case 3: Deduction notice interaction
Asha puts in $1,500 after tax. She wants a $1,000 deduction for part of it and super co contributions on the remainder. She sends a deduction notice for $1,000 only, leaving $500 as non‑concessional to preserve eligibility. The ATO’s rules confirm deduction notices convert personal contributions into concessional contributions and affect super co contributions.

Super co contributions and Age Pension considerations

While you are under Age Pension age and not drawing a super pension, your accumulation super is generally exempt from Centrelink’s asset and income tests. Once you reach Age Pension age, accumulation super is counted as an asset and deemed for the income test, like other financial assets. Super co contributions that you receive are not separately assessed but form part of your super balance and are subject to the usual rules.

Centrelink’s asset and income test settings change over time, and different income streams are assessed in different ways. It is sensible to check how future pension entitlements may be affected as your balance grows.

Tools to help you plan

Use the ATO’s pages on government contributions to confirm current thresholds, and the cap pages to check your space before contributing. For planning trade‑offs, ASIC’s Moneysmart Super contributions optimiser and Superannuation calculator can help you compare scenarios.

If you run or are considering an SMSF and want help coordinating after‑tax contributions, deduction notices, or pension commencements, review these internal resources: SMSF Setup, SMSF Management, SMSF Tax Returns, and Our Services.

FAQs