Explained: Super co-contribution

If you’re new to retirement planning, understanding the potential benefits of superannuation co-contributions can help boost your savings.

What is the government superannuation co-contribution?

Put simply, it’s an incentive program the Australian government supports to reward you for making eligible personal contributions to your superannuation fund.

The co-contribution commitment for the 2022–2023 financial year

In the 2021–2022 financial year, if your total income did not exceed $41,112, the government matched your eligible superannuation contributions by 50 cents per dollar up to a maximum of $500 pa.

And in 2023? The government’s match contribution is the same – 50 cents per dollar up to a maximum of $500 pa – but the income threshold has changed. For this current financial year (2022–2023), the superannuation co-contribution will be made if your income does not exceed $42,016.

Calculating your income eligibility for co-contribution

To calculate your total income for the purposes of eligibility for the super co-contribution in the 2022–2023 financial year,  add up the total of your assessable income, plus your reportable fringe benefits amount plus your total reportable super contributions (less your assessable first home saver released amount if applicable). If you conduct a business, you also need to factor your allowable business deductions.

The superannuation co-contribution phases down for eligible individuals with total income between the lower and higher income thresholds. A tapered rate of 3.333 cents for each dollar of total income applies for total income that exceeds the lower income threshold.

Once the upper threshold ($15,000 above the lower threshold) is reached, the superannuation co-contribution stops. For the 2022–2023 financial year, this means it is $57,016. In 2021–2022, it was $56,112.

Check your eligibility for superannuation co-contribution

You may be eligible for the government superannuation co-contribution if:

• you make an eligible personal superannuation contribution to a qualifying superannuation fund during the financial year. (An eligible personal superannuation contribution is a non-concessional (after tax) contribution that is made to a superannuation fund.) Note that this doesn’t include contributions that attract an income tax deduction. Other exclusions also apply, including transfers from foreign superannuation funds and rollovers
• your total income is less than $57,016 for 2022-23 ($56,112 for 2021-22)
• you are under 71 years old at the end of that tax year
• you lodged an income tax return for that financial year
• you have not held a temporary resident visa at any time during the financial year
• you earned 10 per cent or more of your total income from running a business, being self-employed or from eligible employment or a combination of both
• your total superannuation balance on 30 June of the previous financial year was less than $1.7 million (from 1 July 2021)
• your non-concessional contributions have not exceeded the non-concessional contributions cap for the year.

How do you receive the superannuation co-contribution?

Assuming you earn less than the upper threshold, accessing your co-contribution is relatively easy. 

1. Make a non-concessional (after-tax) contribution to your superannuation fund.
2. Lodge your tax return.
3. The co-contribution is paid into your superannuation fund.

But remember: your superannuation fund cannot accept after-tax contributions, or receive co-contributions on your behalf, if your Tax File Number (TFN) has not been provided to your fund.

How much will you be entitled to (2022-23)*?

Are you eligible for the superannuation co-contribution for the 2022–2023 financial year? How do you plan to use your savings boost? Share your experiences in the comments section below.

Also read: Australians admit their biggest retirement fears