Could You Be Eligible for a Free $500 in Super?

If you're a low or middle-income earner, the government may pay you some superannuation money for free. It’s called the super co-contribution, and it’s a great little boost that can quietly grow your retirement savings over time.

What is the Government Co-Contribution?

The government super co-contribution is a program designed to reward Australians who are making an effort to grow their super. If you make a personal (after-tax) contribution to your super, and you meet certain income and eligibility criteria, the government may chip in up to $500 into your super.

In other words, it's free money, as long as you meet certain requirements.

How it Works

• If you earn $45,400 or less in the 2024–2025 financial year and you contribute $1,000 of your own after-tax money into your super, the government will contribute $500.

• If you earn more than $45,400 but less than $60,400, you might still get a smaller co-contribution.

• The higher your income, the smaller the government’s top-up.

Eligibility

You may be eligible if you meet all of the following conditions:

• Your income is less than $60,400 for the 2024–2025 financial year

• You made a $1,000 personal (after-tax) contribution to your super

• You’re under 71 years old at the end of the financial year

• Your total super balance was less than $1.9 million on 30th June 2024

• You haven't exceeded your non-concessional contributions cap

• You lodge your tax return for the year

• At least 10% of your income comes from employment or running a business

Please be aware that the thresholds and cap above change from year to year. These numbers are only accurate for the financial year ending 30th June 2025.

What Does “10% from Employment or Business” Mean?

To qualify, at least 10% of your total income must come from:

• Employment, such as wages, salaries, bonuses, commissions, or paid parental leave

• Running a business, for example being self-employed or a sole trader

This rule ensures the scheme supports working Australians actively growing their super.

Examples:

• Eligible: Taxpayer A earns $20,000 from her part-time job and $5,000 from investments. Over 10% is from work, so she’s eligible.

• Not eligible: David earns $30,000 from rental properties but doesn’t work, so none of his income is from employment or business. He is not eligible.

When Should I Make My Contribution?

To qualify for the co-contribution, your personal super contribution must be received and processed by your super fund no later than 30th June.

But you shouldn’t wait until 30th June to pay. Most super funds and banks need a few days to process your contribution.

For a safe cut-off date, aim for 23rd of June latest to make your contribution.

How Do I Get the Co-Contribution?

The ATO will automatically calculate your entitlement and deposit the co-contribution directly into your super account, as long as you:

• Make an eligible personal contribution

• Lodge your tax return

• Meet all the criteria

Is It Worth Doing?

While $500 might not sound like much, with compound interest, it can add up significantly over the years. And if you earn $45,400 or less, you are getting 50% return on your money (you put in $1,000, the government gives you $500).

Need Help?

Not sure how much to contribute, or whether you qualify? We’re here to help. Call us by 23rd of June 2025.

General Advice Disclaimer

The information provided on this website is intended for general informational purposes only and should not be construed as professional advice. The advice and recommendations on this site are not intended to replace individual consultations with a qualified professional.

The application of tax, accounting, and business advice varies depending on personal circumstances, and the laws, rules, and regulations are subject to change. Therefore, readers should not rely solely on the content provided, and should always seek professional guidance tailored to their specific needs before making any decision.

W&G Taxation and Accounting accepts no responsibility for any loss or damage, including but not limited to indirect, incidental, consequential, or punitive damages, arising from actions taken or not taken based on the information provided on this website. We recommend that you consult with us directly for advice suited to your unique situation.