The super co-contribution is one of the most straightforward government incentives available to working Australians — yet it consistently goes unclaimed. The ATO automatically calculates it after you lodge your tax return; there is no application, no form, and no paperwork beyond what you already do each year.
The mechanics are simple: for every dollar of personal after-tax money you voluntarily transfer to your super fund, the government adds 50 cents — up to a maximum of $500 per year. To receive the full $500, you need to contribute $1,000 or more and earn $45,400 or less.
The benefit phases out linearly between $45,400 and $60,400. If you earn $52,900 — the midpoint — your maximum co-contribution drops to $250. Contribute $500 to receive it in full. At $60,400 or above, the co-contribution is $0.
The key distinction is that contributions must be personal (non-concessional) — money transferred from your own after-tax bank account directly to your super fund. Regular compulsory employer contributions (the SGC) do not count, and neither do salary sacrifice contributions, which are concessional.
Once the ATO processes your return and your super fund reports the contribution (usually by November), the co-contribution is deposited directly into your super account. It is not counted as a concessional contribution and does not reduce your $30,000 concessional cap.