Millions of Australians have only weeks left to take advantage of a $500 government cash boost available through the ATO’s superannuation co-contribution scheme. The offer allows eligible low- and middle-income earners to receive up to $500 in matched contributions by making after-tax payments to their super fund before the end of the financial year. To qualify for the full amount, individuals must contribute $1,000 from their own funds by June 30.
The scheme is designed to help Australians increase their retirement savings, with the government offering a 50% return on personal super contributions for those who meet income thresholds. Derek Gascoigne, UniSuper’s state manager of advice, explained that timing is critical. “Doing it on the 30th of June doesn’t guarantee that the contribution will register in their account on that day to qualify them”. He recommended making the contribution one to two weeks in advance to ensure eligibility.
Who Qualifies for The $500 Super Co-contribution
To receive the full $500 co-contribution, an individual must earn $45,400 or less during the 2024–25 financial year and contribute $1,000 to their super. The benefit gradually reduces as income increases, cutting off completely for those earning over $60,400. For example, someone earning $50,000 would be eligible for a maximum government contribution of $347, which requires a personal contribution of $694 to obtain.
The co-contribution is available only for non-concessional (after-tax) contributions, and individuals must meet certain residency and age requirements. Eligible participants must be under the age of 71 at the end of the financial year, not hold a temporary visa (unless a New Zealand citizen), and have 10% or more of their income from employment or self-employment.
How The ATO Payment Could Boost Long-term Savings
Gascoigne emphasized that the 50% return rate is “hard to beat” elsewhere, especially when compound interest is factored in over the long term. Even modest contributions can have a significant impact on retirement balances, particularly for younger Australians or those with growing super accounts. The co-contribution is deposited automatically by the Australian Taxation Office once eligibility is confirmed through tax return data.
With the end of the financial year fast approaching, superannuation funds are also advising members to check their fund’s internal processing deadlines, which may fall days before June 30. Contributions made too close to the cut-off date might not be recorded in time, disqualifying them from the 2024–25 co-contribution.
Claiming The ATO Boost Before The June 30 Deadline
The ATO has reminded Australians to act promptly if they wish to receive the co-contribution this year. Contributions should be clearly marked as personal after-tax deposits and not claimed as tax deductions. Individuals can check their eligibility and contribution status through the myGov portal or by contacting their super fund directly.
For those eligible and able to contribute, the program remains one of the most accessible ways to grow superannuation balances with additional government support. The deadline to qualify for this year’s boost is June 30, but acting earlier increases the likelihood of a successful claim.
