There are key things you can do now to get your super working harder for the future. So this tax season, see if you’re eligible for a boost from the government.
If you earn less than $57,016 a year, and make an additional contribution before the end of financial year1, you could receive a bonus government co-contribution to help you make the most of your super2.
Learn how a government super co-contribution could help you start saving extra for your future today.
How can government co-contributions help?
Put simply, additional payments could help your super balance grow over time, thanks to compounding investment returns.
If you’re eligible, the government could match up to 50 cents for every dollar you contribute from your after-tax pay before the end of financial year, up to a maximum of $500 each year.
This co-contribution gets paid directly into your super by the ATO after you’ve lodged your tax return, as long as we have your tax file number.
- Louise, age 35
- Pam, age 55
Louise makes her super go further with a government co-contribution
Louise is 35 and working part-time in administration. She’s recently returned to Australia after living overseas. During her travels, she hasn’t been contributing to super and she wants to catch up. But that isn’t easy on $36,000 p.a. Louise can only afford to add about $20 after tax per week to her super. The good news is she could boost this with a government co-contribution.
To see the difference that extra contributions could make to your super balance, use our super projection calculator. It also shows if you’ll have enough for your retirement needs and estimate how long your super could last.
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Assumptions
Internal AustralianSuper calculations. Assumes there are no changes to Government Co-Contribution scheme during the financial year. Based on a member aged 35 at 1 July 2022 with salary and account balance noted above. Member works full-time with no career breaks throughout the year. Employer contributions are 10.5% for FY23. Investment returns after fees and taxes are 6.5%. Salary is assumed to increase at 3.5% p.a. Admin fees of $1 a week, and 0.10% p.a. of account balance (capped at $350 p.a.). Insurance premiums of $500 p.a., not assumed to increase over time. Assumes member will receive a tax benefit of 15% on any administration fees and any insurance fees deducted directly from the account. End of year account balance is not discounted. Figures rounded to nearest $100.
Am I eligible for a government co-contribution?
There are a few requirements you’ll need to meet to access the government co-contribution payment. Here’s a quick checklist
1. Earnings
1. Earnings
You must earn $57,016 or less a year3
2. Age
2. Age
You must have made an after tax voluntary contribution in the 2023 financial year (^). You must be under 71 years old at the end of the financial year
3. Australian Citizen
3. Australian Citizen
You must be an Australian citizen or the holder of a permanent visa for the full preceding financial year to be eligible for a co-contribution. Temporary visa holders may be eligible if they’re a New Zealand citizen or the holder of a prescribed visa.
What kind of co-contribution am I eligible for?
The size of your government co-contribution is related to what you earn and how much you contribute. For example, if you make $42,016 or less, you could receive the full $500 amount if you contribute $1,000 or more to your super after tax. If you make between $42,016 and $57,016, you could be eligible for a government co-contribution of up to $500.
We’ve made it easy to understand how you can contribute more to your super after-tax, and if eligible, receive a government co-contribution. It can also pay to learn about the other types of contributions you can make1.
Government co-contribution rates
| TOTAL INCOME* | YOUR CONTRIBUTION | CO-CONTRIBUTION |
|---|---|---|
| $42,016 or less | $1,000 | $500 |
| $48,016 | $600 | $300 |
| $54,016 | $200 | $100 |
| $57,016 or more | Any amount | $0 |
^ If you claim a tax deduction for after-tax contributions, your contributions will be classed as before-tax (concessional) contributions and no longer eligible for the government co-contribution.
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Important Information
- Before adding to your super, consider your financial circumstances, contribution caps that may apply, and tax issues. We recommend you consider seeking financial advice.
- If you claim a tax deduction for after-tax contributions, your contributions will be classed as before-tax (concessional) contributions and no longer eligible for the Government co-contribution.
- Assessable income, plus reportable employer super contributions, plus reportable fringe benefits for the 2022/23 financial year.