Government Super Co-Contribution 2026: How to Get Free Super

The government super co-contribution is one of the most underused wealth-building tools in Australia. If you’re a low-to-middle income earner and you make an after-tax contribution to your super, the government will match it at 50 cents per dollar up to a maximum of $500. It’s effectively free money added to your retirement savings — but only around 20% of eligible Australians claim it each year. Here’s exactly how it works in 2026-27.

How the co-contribution works

The formula is simple: you contribute your own after-tax money to super, and the government adds 50% of your contribution as a co-contribution, up to a maximum of $500. To get the full $500, you need to contribute $1,000 or more of your own after-tax money.

The co-contribution phases out as your income rises. For 2026-27 (indexed), the thresholds are:

• Lower threshold (maximum co-contribution): income ≤ $45,020. If your total income is at or below this, you qualify for the full 50% match on every dollar you contribute, up to $500.
• Phase-out range: income between $45,021 and $60,020. The maximum co-contribution reduces by 3.333 cents for every dollar of income above $45,020. At $50,020, the maximum is roughly $333. At $55,020, it’s approximately $167. At $60,020 or above, the co-contribution is reduced to zero.
• Upper threshold (no co-contribution): income ≥ $60,020.

“Total income” for co-contribution purposes is your assessable income plus reportable fringe benefits amounts plus reportable employer super contributions. This means if you salary sacrifice to super, those sacrificed amounts are added back when calculating co-contribution eligibility — they reduce your assessable income for tax purposes but not for co-contribution testing.

Worked examples

Sarah earns $35,000 working part-time. She makes a $1,000 after-tax contribution to super. Her income is below the $45,020 lower threshold, so she qualifies for the full $500 co-contribution. Her $1,000 contribution effectively becomes $1,500 in super — an instant 50% return that will compound for decades.

Tom earns $52,000. He contributes $1,000 after-tax. His income is in the phase-out range: $52,000 - $45,020 = $6,980 above the lower threshold. The reduction is $6,980 × 0.03333 = ~$233. Maximum co-contribution = $500 - $233 = ~$267. Since he contributed $1,000, the co-contribution is the lesser of $267 (max after phase-out) or $500 (50% of his $1,000 contribution) = $267.

Priya earns $62,000. Her income exceeds the $60,020 upper threshold. She makes a $1,000 after-tax contribution but receives no co-contribution. However, her $1,000 contribution still grows tax-effectively within super, and she may benefit from the low-income super tax offset (LISTO) if her income is below $37,000 — a separate government measure that refunds the 15% contributions tax on concessional contributions for low-income earners.

Eligibility requirements

Beyond the income test, you must meet four other conditions:

First, the 10% employment test. At least 10% of your total income must come from employment (as an employee) or from carrying on a business, or a combination of both. Investment income, rental income, government payments, and passive income don’t count toward this 10%. Most working Australians easily satisfy this test, but retirees living purely on investment income or pension payments do not.

Second, age. You must be under 71 years old at the end of the financial year. Once you turn 71, you’re no longer eligible for the co-contribution. Note that from age 67, you must also meet the work test (gainfully employed for at least 40 hours in a 30-day period) to make any personal contributions, including those for the co-contribution.

Third, total super balance. Your total super balance on 30 June of the previous financial year must be below the general transfer balance cap ($1.9 million for 2026-27). This cap applies to prevent high-wealth individuals from using the co-contribution to add to already-large super balances.

Fourth, you must lodge a tax return. The ATO can only determine your eligibility and calculate the co-contribution if you lodge. Even if your income is below the tax-free threshold and you’re not otherwise required to lodge, you need to lodge to receive the co-contribution — and it may be in your interest to do so.

How to receive the co-contribution

The process is designed to be low-friction:

Make a non-concessional (after-tax) contribution to your super fund. You can do this via BPAY using your fund’s details, by direct debit, or through your fund’s app. You don’t need to notify your fund that this is for the co-contribution — it’s just a regular after-tax contribution. Keep a record of the contribution amount and date.

Lodge your tax return for the financial year. The ATO cross-references your income, your super fund’s contribution reporting, and your eligibility to calculate the co-contribution automatically. You don’t fill out a co-contribution claim form — the payment is triggered by your tax return lodgement and your fund’s reporting.

The payment typically arrives in your super account within 60 days of the ATO processing your return, though it can take longer during peak lodgement periods (July-October). You can check whether you received it by reviewing your super account transaction history or through your myGov account linked to the ATO.

Timing and strategic considerations

The co-contribution is assessed per financial year, and contributions must be received by your super fund by 30 June to count for that year. BPAY transfers typically take 1-2 business days, so make your contribution by 27-28 June to ensure it’s received in time. Contributions received on or after 1 July count for the following financial year.

If you’re contributing purely to trigger the co-contribution, $1,000 is the sweet spot — it maximises the government contribution and is accessible for most people on modest incomes. Contributing more than $1,000 doesn’t increase the co-contribution (it’s capped at $500 regardless), but the additional funds still grow in the tax-advantaged super environment.

For couples, both partners can qualify independently. If both earn below the lower threshold and each contributes $1,000 after-tax, the household receives $1,000 in combined co-contributions — effectively doubling the benefit.

The co-contribution is treated as a non-concessional contribution when it enters your super fund, so it doesn’t affect your concessional cap. It’s also tax-free on entry and tax-free on withdrawal in retirement (once you meet a condition of release).

Don’t leave free money on the table

Twenty per cent uptake means 80% of eligible Australians miss out on up to $500 per year. Over a 20-year working life, that’s $10,000 in government contributions that compound into a significantly larger retirement balance. If you earned $40,000, contributed $1,000 after-tax to super each year, and received $500 in co-contribution annually, the co-contribution alone (not including your own contributions or investment earnings) adds $10,000 in government payments to your super over 20 years. With compound returns, the end value is materially higher.

Use the Super Growth calculator to project how your super balance grows with regular contributions including the co-contribution. For more on building super, see our guides on salary sacrifice to super and super contribution caps.

Disclaimer: This article provides general estimates only and does not constitute financial, tax, or legal advice. Eligibility thresholds, contribution caps, and government payments are subject to legislative change. Always check current ATO information for your specific circumstances. Last updated: July 2026.