Superannuation Co-contribution
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Superannuation Co-contribution

The Australian Superannuation Co-contribution is a government scheme that encourages low and middle-income earners to save for their retirement. Under this scheme, the government will make a contribution to your superannuation account if you make voluntary after-tax contributions to your superannuation fund.

To be eligible for the co-contribution, you must be a low or middle-income earner and make personal (after-tax) contributions to your superannuation fund. The amount of co-contribution you receive depends on your adjusted taxable income (ATI) and the amount of voluntary contributions you make.

For the 2022-23 financial year, the maximum co-contribution amount is $500. To receive the maximum co-contribution, you must earn less than $42,016 and make a voluntary contribution of $1,000 to your superannuation account. If you earn between $42,016 and $57,016, you may still be eligible for a partial co-contribution. The minimum payment is $20 if your income is less than $57,016

The co-contribution is not automatic, and you must lodge a tax return to claim it. If you are eligible, the co-contribution will be paid directly into your superannuation account.

Does the ATO use the Adjusted taxable income for the co-contribution?

Yes, the Australian Taxation Office (ATO) uses the Adjusted Taxable Income (ATI) to determine eligibility for the Superannuation Co-contribution. Your ATI takes into account your assessable income plus reportable fringe benefits and reportable employer super contributions less any assessable First home super saver released amount and any allowable business deductions.

To be eligible for the Superannuation Co-contribution, your ATI must be less than the relevant income threshold for the financial year. The income threshold for the 2022-23 financial year is $$57,016. If your ATI exceeds this threshold, you will not be eligible for the co-contribution.

Am I eligible for super co-contributions?

You may be eligible for a super co-contribution if all of the following apply, you made an eligible personal super contribution to a complying super fund or retirement savings account. This does not include amounts which you are claiming as a deduction and is an eligible Downsizer contribution.

You did not exceed your non-concessional contribution cap, your total superannuation balance on 30 June 2023 was less than $1,700,000, you were under 71 years old on 30 June 2023, your total income for 2022–23 was less than $57,016, your employment and business income (including business income from a partnership) make up 10% or more of your total income and you did not hold a temporary visa at any time during 2020–21 (unless you are a New Zealand citizen or it was a prescribed visa).

What are the benefits of making a super co-contribution?

Are the benefits of making a super co-contribution worth considering? Yes, if your income is below $42,016 and you contribute up to $1000, you will receive a 50% return on your investment, which is an excellent return.

However, if your income falls between $42,016 and below $57,016, your return will decrease from 50% to zero based on the level of your taxable income.


If you earn $40,000 and make an after-tax contribution of $1,000 to your superannuation fund, you could be eligible for a co-contribution of up to $500 from the Australian government. The co-contribution is calculated at 50% of your after-tax contribution, up to a maximum co-contribution of $500.

However, it’s important to note that eligibility for the co-contribution also depends on meeting other criteria, such as age, total super balance, and total income. If you meet all the eligibility criteria and receive the maximum co-contribution of $500, it can be a significant boost to your retirement savings.

The ATO’s Super Co-Contributions Calculator will help you work out how much you can expect.

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  1. Does this still apply if I still have an active super at the age of 71? I am still a sole trader.

    1. Author

      One of the conditions to be eligible is that you need to be less than 71 at the end of the financial year.

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