Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should research and consult a qualified financial professional before making financial decisions.
If you’re looking for a simple way to give your retirement savings a healthy nudge—and who isn’t, these days?—there’s a government scheme about as close to ‘free money‘ as you’ll ever get.
But you’ll need to act fast: the clock is ticking, and you’ve only got a few weeks left to claim up to $500 from the Australian Tax Office (ATO) before the end of the financial year.
Let’s break down how this works, who’s eligible, and why it’s a deal that’s ‘hard to beat’—plus, we’ll share some practical tips to ensure you don’t miss out.
This little-known gem is the government’s superannuation co-contribution scheme.
In a nutshell, if you’re a low or middle-income earner and make a personal (after-tax) contribution to your super fund, the government will chip in up to $500 to match you—that’s a 50 per cent return on your money, just for thinking ahead.
Here’s how it works: if you put in $1,000 of your after-tax money, the government will add $500. Even if you can’t manage the full $1,000, you’ll still get a 50 per cent top-up on whatever you can contribute, up to that $500 maximum.
Not everyone can claim this bonus, but the eligibility rules are pretty straightforward:
- To get the full $500, your total income for the 2024-2025 financial year must be $45,400 or less.
- If you earn between $45,400 and $60,400, you’ll still get something, but the amount tapers off as your income rises, cutting out entirely at $60,400.
- You must make a personal, non-concessional (after-tax) contribution to your super fund by 30 June.
- Employer contributions, salary sacrifice, or contributions you claim as a tax deduction don’t count.
- You must be under 71 years old at the end of the financial year.
- You need to have at least 10 per cent of your income from employment or running a business.
- You can’t hold a temporary visa (unless you’re a New Zealand citizen).
It’s tempting to leave things until the 11th hour, but with super contributions, timing is everything.
As UniSuper’s Derek Gascoigne pointed out, ‘Doing it on the 30th of June doesn’t guarantee that the contribution will register in your account on that day to qualify you for the co-contribution.’
Super funds have different processing times; you’ll miss out if your contribution lands after the deadline.
The safest bet? Make your contribution at least a week or two before 30 June. That way, you can relax knowing your money will be counted for this financial year.
How much will you get?
The maximum government co-contribution is $500, but the exact amount depends on your income and how much you contribute. For example:
- If you earn $45,400 or less and contribute $1,000, you’ll get the full $500.
- If you earn $50,000, your maximum co-contribution drops to $347. To get that, you’d need to contribute $694 (because the government matches 50 per cent).
- If you earn more than $60,400, you’re not eligible.
Not sure where you stand? The ATO has a handy online calculator to help you estimate your entitlement.
The process is refreshingly simple. Just make your after-tax contribution to your super fund before 30 June.
When you lodge your tax return, the ATO automatically checks if you’re eligible and pays the co-contribution directly into your super account, usually between November and January.
Before you rush to transfer your savings, remember: once money goes into your super, it’s locked away until you reach retirement age (currently 60, if you’ve stopped working). That’s great for your future self, but not so handy if you need the cash for something urgent.
If you’re worried about committing to a big lump sum, consider setting up smaller, regular contributions—say, $20 a week. Over a year, that adds up to $1,040, and you’ll barely notice it missing from your budget.
Have you taken advantage of the super co-contribution scheme before? Do you have tips for making the most of your super? Share your experiences and questions in the comments below—we’d love to hear from you!
Also read: Could your tax refund be at risk? ATO issues urgent alert as hackers steal $14,000
