The Australian Government Superannuation Co-Contribution Program<\/strong> is a financial incentive for low- and middle-income earners to boost<\/strong> their retirement savings<\/strong>. By making eligible personal contributions to your superannuation fund, you could receive up to $500<\/strong> annually from the government, depending on your income and contribution amount.<\/p>\n\n\n\n
To qualify, your total income for the 2024-25 financial year must not exceed $60,400<\/strong>, with the maximum benefit available to those earning $45,400 or less<\/strong>. As income rises above the lower threshold, the co-contribution phases out at 3.333 cents per dollar<\/strong>, reaching $0 at the upper limit. The total income calculation includes assessable income, reportable fringe benefits, and employer super contributions, reduced by eligible deductions.<\/p>\n\n\n\n
Eligible contributions must be non-concessional (after-tax)<\/strong> and cannot include amounts that attract a tax deduction, rollovers, or transfers from foreign super funds. Additionally, participants must be under 71 years old<\/strong> at the end of the financial year and have a Tax File Number (TFN)<\/strong> registered with their super fund.<\/p>\n\n\n\n
Eligibility requirements also include:<\/p>\n\n\n\n
To take advantage of the program, you must make an eligible after-tax contribution by 30 June 2025<\/strong> and lodge your tax return for the financial year. Once your tax return is processed, the Australian Tax Office (ATO)<\/strong> will determine your eligibility and calculate the co-contribution. The government will deposit the payment directly into your super fund within 60 days.<\/p>\n\n\n\n
For those unsure about the benefit they might receive, the following table shows how the co-contribution phases out based on income:<\/p>\n\n\n\n
| Total Income<\/strong><\/th> | Eligible Contribution<\/strong><\/th> | Government Co-Contribution<\/strong><\/th><\/tr><\/thead> |
|---|---|---|
| $45,400 or less<\/td> | $1,000<\/td> | $500<\/td><\/tr> |
| $50,000<\/td> | $1,000<\/td> | $333<\/td><\/tr> |
| $57,400<\/td> | $1,000<\/td> | $100<\/td><\/tr> |
| $60,400<\/td> | $1,000<\/td> | $0<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n This table illustrates how the benefit decreases as income exceeds the lower threshold, giving a clear picture of the program’s tapering mechanism.<\/p>\n\n\n\n Low-Income Superannuation Tax Offset (Listo)<\/h2>\n\n\n\nFor individuals earning up to $37,000<\/strong>, the Low-Income Superannuation Tax Offset (LISTO)<\/strong> provides an additional benefit by refunding tax paid on concessional (pre-tax) contributions, such as employer-paid super. This offset, capped at $500<\/strong>, is calculated at 15% of concessional contributions and credited automatically by the ATO.<\/p>\n\n\n\n For instance, if your employer contributes $4,000<\/strong> to your super, the 15% tax<\/strong> deduction amounts to $600<\/strong>. Under LISTO, the maximum refund of $500<\/strong> would offset most of this tax, effectively reducing the tax burden on your contributions.<\/p>\n\n\n\n Practical Benefits for Savers<\/h2>\n\n\n\n |