Super Co-Contribution 2026–27: Eligibility and $500 Boost

Quick answer

The superannuation co-contribution is a government payment of up to $500 for eligible low and middle income earners who make a personal after-tax super contribution.

For 2026–27:

• Lower income threshold: $49,293
• Upper income threshold: $64,293
• Government pays 50 cents per $1 contributed
• Maximum payment: $500
• No application required

You contribute. You lodge your tax return. The ATO does the rest.

You can estimate your entitlement using the Super Co-Contribution Calculator.

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What is the superannuation co-contribution?

The superannuation co-contribution is a government super co-contribution designed to help eligible Australians boost their retirement savings.

If you contribute your own after-tax money into super and meet the ATO rules, the government may add up to $500 to your super account.

It is not a tax deduction.
It is not salary sacrifice.
It is not automatic without contribution.

You must contribute from your take home pay and lodge your tax return.

Prefer a quick explanation? I’ve covered the basics in this short video:

The official ATO rules for 2026–27 are available here:
ATO Super Co Contribution

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2026–27 income thresholds

For the 2026–27 financial year:

If your total income is at or below $49,293 and you contribute $1,000 after tax, you may receive the full $500.

If your income is between $49,293 and $64,293, your maximum entitlement reduces progressively.

If your income is $64,293 or higher, you are not eligible.

Example: Olivia earns $55,000 in 2026–27 and contributes $1,000 after tax. Her income sits between $49,293 and $64,293, so her maximum entitlement is reduced under the taper formula.

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How much can you receive?

The government pays:

• 50 cents for every $1 of personal after-tax contribution
• Up to a maximum of $500
• With a minimum payment of $20

To receive the full $500, you must contribute at least $1,000 from after-tax income and meet the eligibility rules.

Between the thresholds, the maximum entitlement reduces by 3.333 cents for every dollar of income above $49,293.

The formula is:

1. Maximum entitlement = 50 percent × your personal after-tax contribution, capped at $500.
2. Taper reduction = (income − $49,293) × 0.03333.
3. Final entitlement = maximum entitlement − taper reduction, but not below $0.

The taper reduces your maximum possible entitlement, not your contribution. If you contribute less than $1,000, your maximum entitlement is already below $500 before the taper is applied.

If your income is close to the thresholds, small changes can affect your entitlement. You can calculate the exact amount using the Super Co-Contribution Calculator.

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Worked examples

Example 1 — Income below the lower threshold

James earns $40,000 in 2026–27 and contributes $1,000 after tax.

His income is below $49,293, so no taper applies.

Maximum entitlement = $1,000 × 50 percent = $500.

James receives $500.

Example 2 — Income between the thresholds

Mia earns $55,000 in 2026–27 and contributes $1,000 after tax.

Step 1 — maximum entitlement:

$1,000 × 50 percent = $500.

Step 2 — apply the taper:

$55,000 − $49,293 = $5,707 above the lower threshold.

$5,707 × 0.03333 ≈ $190.22 reduction.

Final entitlement:

$500 − $190.22 ≈ $309.78.

The ATO rounds to the nearest 5 cents, so Mia receives approximately $309.80.

Example 3 — Smaller contribution

Noah earns $42,000 in 2026–27 and contributes $500 after tax.

His income is below $49,293, so no taper applies.

Maximum entitlement = $500 × 50 percent = $250.

Noah receives $250. Even though he meets the income test, the contribution size limits the result.

What happens at $64,293?

At the upper threshold:

$64,293 − $49,293 = $15,000.

$15,000 × 0.03333 ≈ $500 reduction.

This reduces the maximum entitlement to zero. At or above $64,293, no co-contribution is payable.

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Eligibility rules explained clearly

To qualify for the super co-contribution in 2026–27, you must meet all conditions set out by the ATO.

Here is the eligibility checklist in one place.

1. Make a personal after-tax contribution

You must contribute a personal non-concessional contribution from your take home pay.

It does not include:

• Salary sacrifice contributions
• Employer super guarantee contributions
• Personal contributions claimed as a tax deduction

Your contribution must reach your fund by 30 June 2026.

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2. Pass the income threshold test

Your total income must be below $64,293 for 2026–27.

Total income generally includes:

• Assessable income
• Reportable fringe benefits
• Reportable employer super contributions, reduced by excess concessional contributions

It is reduced by:

• Assessable First Home Super Saver released amounts
• Allowable business deductions

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3. Pass the 10 percent eligible income test

At least 10 percent of your total income must come from employment or business activities.

Eligible income includes:

• Salary and wages
• Director fees
• Business income as a sole trader or partner

The following do not count:

• Rent
• Dividends
• Interest
• Trust distributions
• Non-business partnership distributions

If 100 percent of your income comes from investments, you will not qualify.

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4. Meet the additional conditions

You must:

• Be under 71 years old at the end of the financial year
• Lodge your tax return
• Have a total super balance below the general transfer balance cap at 30 June 2026
• Not exceed your non-concessional contributions cap
• Not hold a temporary visa unless an exception applies

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Common eligibility mistakes

These are the most common reasons people miss out:

• Contributing via salary sacrifice instead of after-tax
• Earning mostly investment income and failing the 10 percent test
• Missing the 30 June contribution deadline
• Forgetting to lodge a tax return
• Exceeding the non-concessional contributions cap

If your income is close to the thresholds, small changes can affect your entitlement. It is worth checking your numbers carefully using the Super Co-Contribution Calculator.

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When is the co-contribution paid?

After you lodge your tax return, the ATO calculates your entitlement and pays it directly to your super fund.

Most payments are made between November and January following the end of the financial year.

The payment is not taxable and is preserved in super until you meet a condition of release.

For full process details, see How to Claim the Super Co-Contribution.

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How this fits into a broader strategy

The co-contribution sits alongside other incentives such as the Low Income Super Tax Offset.

If you want a comparison, see Co-Contribution vs LISTO.

If your income is above the co-contribution thresholds, catch-up concessional contributions may be another way to boost your super in a tax effective way.

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If you want help deciding whether the co-contribution fits into your broader super strategy, learn more about my superannuation advice service.

FAQs

What are the 2026–27 super co-contribution income thresholds?

For 2026–27, the lower income threshold is $49,293 and the higher income threshold is $64,293. At or below the lower threshold you may receive the full $500 if you contribute $1,000 after tax. At or above the higher threshold you receive no co-contribution.

How is the super co-contribution calculated?

The government pays 50 cents for every $1 of personal after-tax contribution, up to a maximum of $500. If your income is above $49,293 in 2026–27, the maximum entitlement reduces by 3.333 cents for every $1 above that threshold until it phases out at $64,293.

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

No. The government matches 50 cents per $1 contributed. If you contribute less than $1,000, your entitlement is limited to half of your contribution before any income taper is applied.

Do I need to apply for the super co-contribution?

No. You do not apply. The ATO automatically assesses your eligibility after you lodge your tax return and pays the amount directly to your super fund if you qualify.

Does salary sacrifice count for the co-contribution?

No. Salary sacrifice contributions and personal contributions claimed as a tax deduction do not count. You must make a personal after-tax non-concessional contribution.

When is the super co-contribution paid?

In most cases, payments are made between November and January after the end of the financial year, once your tax return has been processed.