2025 Super Co-contribution: Eligibility, Benefits & How to Claim

The government’s superannuation co-contribution scheme remains one of the most effective ways for eligible Australians to boost their retirement savings, dollar-for-dollar. With cost-of-living pressures and changing policy thresholds in 2025, understanding how to take advantage of this incentive could make a real difference to your long-term financial security.

What is the Superannuation Co-contribution?

Australia’s superannuation co-contribution is a government initiative designed to help low and middle-income earners grow their retirement nest egg. If you make an after-tax (non-concessional) contribution to your super, the government may add up to $500 extra per year—effectively giving you a 50% return on your voluntary deposit, up to the scheme’s maximum.

For 2025, the government will match 50c for every $1 you contribute, up to $1,000, meaning the maximum co-contribution remains $500. But the amount you receive depends on your income and how much you contribute.

2025 Income Thresholds and Eligibility

The rules for the co-contribution change with inflation each year. For the 2024–25 financial year, the key thresholds are:

• Maximum entitlement: Available if your total income is less than $44,000
• Reduces gradually: Between $44,000 and $59,000 (tapering off to zero)
• Not available: If your total income is $59,000 or more

Other eligibility requirements include:

• Making a personal after-tax contribution to your super fund
• Earning at least 10% of your income from employment or running a business
• Being under age 71 at the end of the financial year
• Not holding a temporary visa (with some exceptions)
• Having a super balance below the general transfer balance cap ($1.9 million for 2025)

For example, if you’re a part-time retail worker earning $38,000, and you add $800 of your own money to super, the government chips in $400. If you’re a freelancer earning $46,000, your co-contribution is reduced on a sliding scale.

How to Make the Most of the Co-contribution in 2025

The co-contribution is automatic—if you’re eligible and make a personal super contribution, the ATO pays the bonus directly to your fund after you lodge your tax return. Still, there are smart ways to maximise your benefit:

• Contribute early: Don’t wait until June—adding to your super earlier gives you more time for investment growth.
• Check your income: Use the ATO’s online calculator to estimate your entitlement before making a contribution, especially if your income is near the threshold.
• Meet work test rules: If you’re over 67, you’ll need to meet the work test to be eligible to contribute to super and receive the co-contribution.
• Keep records: Make sure your super fund has your tax file number and correct details so the payment isn’t delayed.

Real-world example: Sarah, a 29-year-old hospitality worker, earned $42,000 in 2024–25. She contributed $1,200 to her super from her savings. She receives the full $500 co-contribution, making her total boost $1,700 for the year—without paying any extra tax.

Why the Co-contribution Still Matters in 2025

With the cost of living at record highs, many Australians are struggling to put money aside for retirement. Yet, the co-contribution remains one of the few ways to get a guaranteed government top-up. In 2025, the program continues to be an under-utilised strategy, especially for casual workers, women returning to the workforce, and self-employed Aussies who may not receive compulsory employer super.

Even if you can only contribute a small amount, every dollar helps. The compounding effect of investing even $500 extra per year over a decade can add up to thousands more in retirement, thanks to investment returns on the government’s contribution as well as your own.