What’s the Government co-contribution?

The amount that the Government co-contributes will depend on how much you contribute, and your income. 

For every after-tax dollar you contribute up to $1,000 per Financial Year, the Government will co-contribute 50 cents. The maximum Government co-contribution is $500 and the minimum is $20. 

Co-contribution amounts for Financial Year 2020/21 

• If your total income is less than $39,837 
  When you make after-tax (non-concessional) contributions of up to $1,000, the Government will co-contribute up to $500.
  
  
• If your total income is more than $39,837 
  The amount of co-contribution reduces by 3.333 cents for any dollar above $39,837. 
  
  
• If your total income is more than $54,837
  You won’t be eligible for the Government co-contribution. 

It will depend on your own financial situation, but here’s how the scheme works in practice. Each of the following people have made after-tax (non-concessional) contributions of $1,000 into their super: 

• Joanna, kitchen hand 
  Working several shifts a week at a restaurant, Joanna’s total income for the Financial Year was $38,000. She’s making an after-tax (non-concessional) contribution of $1,000 into her super account. For Joanna, the Government would co-contribute $500.
  
  
• Michael, social worker 
  He works part-time in an aged care home, and Michael’s total income for the Financial Year was $45,000. He’s making an after-tax (non-concessional) contribution of $1,000 into his super account. For Michael, the Government would co-contribute $327.92.
  
  
• Emily, self-employed cleaner 
  Emily runs a small home-cleaning team, and her total income for the Financial Year was $50,000. She’s making an after-tax (non-concessional) contribution of $1,000 into her super account. For Emily, the Government would co-contribute $161.27. 
  
  
• Ian, bus driver 
  Including overtime, Ian’s total income for the Financial Year was $56,000. He’s making an after-tax (non-concessional) contribution of $1,000 into his super account. For Ian, the Government would co-contribute $0. 

Yes. To be eligible, at least 10% of your total income must be from employment or self-employment. 

• You’ll need to answer ‘yes’ to all of the following: 
• You made one or more after-tax (non-concessional) contributions to your super account during the financial year 
• You pass the two income tests: 
  • your total income for the financial year is less than $54,837 
  • 10% or more of your total income comes from eligible employment-related activities or carrying on a business, or a combination of both 
• You were less than 71 years old at the end of the financial year 
• You didn’t hold a temporary visa at any time during the financial year (unless you’re a New Zealand citizen or it was a prescribed visa) 
• Your after-tax (non-concessional) super contributions did not exceed the Government contribution cap 
• At 30 June of the previous year, your total super balance was less than $1.6 million 
• You lodged your tax return for the relevant financial year 

You’re not entitled to a super co-contribution for any personal contributions which you’ve claimed (and been allowed) as a tax deduction.

Any Government co-contribution you receive won’t count towards either your after-tax (non-concessional) or before-tax (concessional) contribution caps.

However, the amount you contributed to qualify for the co-contribution scheme will count towards your after-tax (non-concessional) contribution cap.

For detailed information about eligibility requirements for co-contributions, visit the Australian Tax Office website.