How the Super Co-Contribution Is Calculated (2025–26)

Quick answer

For 2025–26:

1. The government pays 50 cents for every $1 of personal after-tax contribution, up to $500.
2. If your income exceeds $47,488, the maximum entitlement reduces by 3.333 cents per $1 above that threshold.
3. The entitlement phases out completely at $62,488.

Lower income threshold: $47,488
Upper income threshold: $62,488

For a full overview of the scheme, see
Superannuation Co-Contribution Explained

To estimate your entitlement instantly, use the
Super Co-Contribution Calculator

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The formula (plain English and numbers)

There are two moving parts:

Step 1 — Contribution matching

Maximum entitlement =
50% × your personal after-tax contribution
(capped at $500)

Step 2 — Income taper (if income exceeds $47,488)

Reduction =
(Income − $47,488) × 0.03333

Final entitlement =
Maximum entitlement − Reduction
(but not below $0)

If the final amount is less than $20 and you are otherwise eligible, the ATO pays a minimum of $20.

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Important: Order matters

The taper reduces your maximum possible entitlement, not your contribution.

If you contribute less than $1,000:

• Your maximum entitlement is already below $500
• The taper then reduces that smaller maximum

This is why two people with the same income can receive different amounts if they contribute different amounts.

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Example 1 — Income below lower threshold

James earns $40,000 in 2025–26.
He contributes $1,000 after tax.

Income is below $47,488.

Maximum entitlement = $1,000 × 50% = $500
No taper applies.

He receives $500.

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Example 2 — Income between thresholds (full numeric example)

Mia earns $55,000 in 2025–26.
She contributes $1,000 after tax.

Step 1 — Maximum entitlement
$1,000 × 50% = $500

Step 2 — Apply taper
Income above threshold:
$55,000 − $47,488 = $7,512

Reduction:
$7,512 × 0.03333 ≈ $250.37

Final entitlement:
$500 − $250.37 ≈ $249.63

The ATO rounds to the nearest 5 cents.

Mia receives approximately $249.65.

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Example 3 — Smaller contribution

Noah earns $42,000 in 2025–26.
He contributes $500 after tax.

Maximum entitlement:
$500 × 50% = $250

Income below lower threshold.
No taper applies.

He receives $250.

Even though he qualifies for the full scheme, the contribution size limits the result.

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What happens at $62,488?

If income reaches $62,488:

Income above lower threshold = $15,000
$15,000 × 0.03333 ≈ $500 reduction

This reduces the maximum entitlement to zero.

At or above $62,488, no co-contribution is payable.

For full threshold details, see
Super Co-Contribution Thresholds

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Why small income differences matter

If your income is close to either threshold:

• Overtime
• Bonuses
• Business income changes

can materially affect the outcome.

If you are near the thresholds, run the numbers carefully using the
Super Co-Contribution Calculator

For eligibility rules beyond income, see
Super Co-Contribution Eligibility

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FAQs

How is the super co-contribution calculated?

The government pays 50 cents for every $1 of personal after-tax contribution, up to $500. If income exceeds $47,488 in 2025–26, the maximum entitlement reduces by 3.333 cents per $1 above that level until it phases out at $62,488.

What is the taper rate for 2025–26?

The taper reduces the maximum entitlement by 3.333 cents for every $1 of income above $47,488.

Can I receive the full $500 if I contribute less than $1,000?

No. The government matches 50 percent of your contribution. If you contribute $600, the maximum possible entitlement is $300 before any taper is applied.

Is there a minimum co-contribution?

Yes. If you qualify and the calculated amount is less than $20, the ATO pays a minimum of $20.