Are you Eligible to Receive a Government Co-Contribution made to your Self-Managed Super Fund (SMSF)?
The government will contribute a maximum of $500 to your Self-Managed Super Fund (SMSF) if you are eligible as a low or middle income earner.
What is the Government Co-Contribution?
It is an initiative by the government to encourage and boost the super savings of low to middle-income earners. The contribution the government makes to your SMSF depends on a number of criteria which include your income and the amount of non-concessional contributions you made to your superannuation funds.
Are you eligible for a Government Co-Contribution?
The Australian Taxation Office (ATO) determines if you are eligible to receive the government co-contribution, also referred to as super co-contributions, and how much you can receive. You do not need to request it from the ATO it will be sent to you automatically. The criteria to be eligible for a government co-contribution include:
- make personal non-concessional contributions (NCC) to your SMSF (or other super fund)
- not have excess non-concessional contributions made in the same year the NCC is made
- pass the income threshold test and the 10% eligible income test
- must be less than 71 years old at the 30th of June in the year when the NCC is made
- lodged your personal tax return for the financial year in which you made NCC
- in the year you make your NCC your total superannuation balance (TSB) cannot exceed the general transfer balance cap which was $2.1 million in the 2026/27 financial year and thus your TSB at 30th June 2026 must not exceed $2.1 million
- you must not be the holder of a temporary visa (there are limited exceptions such as a New Zealand citizen)
Hint – total superannuation balance (TSB) is the total amount you have in super across all of your super funds including pension and accumulation accounts. Some pension accounts have a special pension balance. The TSB can also include a proportion of the unused borrowing in relation to a limited recourse borrowing arrangement.
What is the 10% Income Test?
You must be working or be carrying on a business to satisfy the 10% income test. You will not be eligible if you are unemployed, receive unpaid charity work, receive the old age pension or only investment income. 10% or more of your total income must come from working or carrying on a business. Business income is based on your gross income and does not include business deductions.
Income includes salary and wages from employment, director fees and business income earned as a sole trader or in a partnership.
Hint – total income includes an individual’s assessable income plus reportable fringe benefits plus reportable employer superannuation contributions (RESC) being the amount of employer contributions exceeding the superannuation guarantee contributions (generally salary sacrifice payments).
What is the Income Threshold Test?
To be eligible to receive the government co-contribution your total income must be less than the higher income threshold. If your total income falls between the lower and the higher income threshold your maximum entitlement is reduced progressively.
| Year | Lower income threshold | Higher income threshold |
| 2025/26 | $47,488 | $62,488 |
| 2024/25 | $45,400 | $60,400 |
The definition of “total income” is slightly different to the definition when measuring the 10% threshold. Total income in relation to the income threshold test includes:
- assessable income
- reportable fringe benefits
- RESC (employer contributions exceeding the superannuation guarantee contributions) reduced by any excess concession contributions
Less your
- assessed first home super save released amount (if applicable)
- business deductions
Example 1 from the ATO website
Example: eligible for maximum co-contribution
In the current financial year, Angelo will earn $35,000. He pays $40 per fortnight from his take-home pay into his super account. This will total $1,040 for the financial year. He meets all other co-contribution eligibility requirements.
With this payment plan, Angelo will be eligible for the maximum co-contribution of $500.
We will pay this amount into Angelo’s super account.
Example 2 – apportionment of the co-contribution
In 2024/25 financial year Joe earns wages of $50,000. He does not have any other income, reportable fringe benefits or RESC and does not hold a temporary visa. He intends to contribute NCC of $2,500 to his SMSF. He is 69 at the 30th June 2025.
Joe passes the 10% test as his assessable income is 100% from wages.
Joe passes the income threshold test as he is between the lower and higher income thresholds. He is entitled to an apportionment of the maximum $500 co-contribution.
Using the ATO calculator Joe will receive $347 as a co-contribution. The ATO will pay this into Joe’s SMSF.
Example 3 –apportionment for a government co-contribution
Ted has wages income of $45,000. He also has gross business income of $20,000. His RESC is $5,000. His business deductions are $11,000. He is not a temporary visa holder, he does not have any reportable fringe benefits or any other income. He is 64 as at 30th June 2025 and intends to make a NCC to his SMSF of $600 before 30th June 2025.
His total income for the purposes of the income threshold test is $59,000. His total income in relation to the 10% test is $70,000.
His total income from wages and business income is greater than 10% x $70,000 and thus he passes the 10% test.
He passes the income threshold as his total income of $59,000 falls within the lower and higher income thresholds.
Based on the ATO calculator Ted will receive $47 as a co-contribution. The ATO will pay this into Ted’s SMSF.
How much will the Government Pay into your SMSF?
The minimum contribution is $20 increasing to a maximum of $500.
If you meet all of the other eligibility requirements and make at least $1 NCC the minimum government co-contribution is $20.
Refer to the ATO link to the government co-contributions calculator to find out if you are eligible.
Government Co-Contribution Calculator
Co-contribution limit for the 2024/25 financial year payable is 50% of a member’s NCC but is limited to a maximum of $500 and is apportioned when the member’s total income is between the lower and higher thresholds.
| Income Threshold | Co-contribution % | Maximum Co-Contribution |
| $45,400 or less | 50% | $500 |
| $45,501 to $60,400 | 50% | $500 reduced by $0.0333 for every $ of income over $45,400 |
| $60,401 or over | Nil | $Nil |
What is a Personal Non-Concessional Super Contribution?
A personal non-concessional super contribution refers to a personal contribution made to your SMSF (or another super fund) from after-tax income, which can be from your take-home pay, your savings or perhaps from an inheritance. This does not include personal contributions claimed as a tax deduction in your tax return, nor contributions made through a salary-sacrifice arrangement with an employer. One of the criteria to qualify for the maximum super co-contribution is to make non-concessional contributions which total at least $1,000 within the same financial year.
When is the Government Co-Contribution Paid?
The ATO generally make the contributions payments between November and January each year based on personal non-concessional contributions made in the previous year.
The ATO require the following before they can assess what the co-contribution should be:
- you lodge your tax return (for the year in which you made the personal non-concessional contributions)
- your SMSF tax return is lodged (includes the member personal contributions made)
Generally, the ATO will automatically pay it to your super account from which your non-concessional contributions were made. However, if you no longer have an eligible super account and you have retired i.e. turned 65 or permanently incapacitated it can be paid directly to you. The ATO can also pay it to your legal representative if you die before the payment is assessed.
A request for the co-contribution can be made directly by:
- requesting it online using your myGov account
- complete an “Application for payment of ATO-held superannuation money” (NAT 74880)
Or alternatively in the case of a deceased member, your executor can apply by completing an “Application for payment of ATO-held superannuation money for a deceased person cover sheet” (NAT 75530)
Can I redirect my co-contribution to a different Super Fund?
Yes. You can call the ATO on 131 020 and request it be directed into a different fund to the one your personal contributions were made from. It is important that the fund accepts government co-contributions.
What can you do if you haven’t received your Payment?
You can phone the ATO on 13 10 20 or request an explanation or a review by writing to:
Superannuation
Australian Taxation Office
PO Box 3100
PENRITH NSW 2740
Do you receive interest on Delayed Payments?
The ATO will pay interest on late payments which have not been made within 60 days of them receiving all of the required information to make the payment.
Is the Government Co-Contribution Taxed?
No. It is not taxed in your tax return, and it is not taxed in your SMSF’s tax return.
How is the Contribution Treated in your SMSF?
- Preserved and not accessible until you have a condition of release such as turning 65, turning 60 and retired or you are eligible for early release of super.
- It cannot be added to a pension account but becomes part of your accumulation account
- It is allocated to the tax-free component of your accumulation account
- Earnings on the contributions are subject to tax
- There is no tax on the co-contribution when it is withdrawn from the fund
- The co-contribution does not count towards the member’s contribution cap
Do you want to learn more about Government Co-Contributions?
Give us a call on 1300 392 544 or get in touch online.