Super Co-Contribution & Spouse Contribution Tax Offset

Government Super Co-Contribution

The government super co-contribution is a matching scheme designed to help low-to-middle income earners build their retirement savings. For every $1.00 of eligible personal (after-tax, non-concessional) super contributions you make, the government adds $0.50 to your super fund, up to a maximum of $500 per financial year.

To receive the full $500 co-contribution, you need to make $1,000 in personal non-concessional contributions during the financial year and earn $49,293 or less in total income (FY2026-27). The co-contribution reduces progressively for incomes between $49,293 and $64,293, reaching zero at the upper threshold. Low-income earners may also get the low income super tax offset (LISTO) on their employer’s before-tax contributions.

How It Works

1. Make a personal super contribution: deposit after-tax money into your super fund (not salary sacrifice; it must be a non-concessional contribution from your own bank account)
2. Lodge your tax return: the ATO automatically checks your eligibility after processing your return
3. Receive the co-contribution: if eligible, the ATO pays the matching amount directly into your super fund, usually within 60 days of your tax return being processed

You do not need to apply separately. The process is entirely automatic once your tax return is lodged and your super fund details are up to date with the ATO.

Eligibility Requirements

• Total income (assessable income + reportable fringe benefits + reportable employer super) of less than $64,293 in FY2026-27
• At least 10% of total income must come from employment, business, or a combination of both
• Lodge an income tax return for the relevant financial year
• Be under age 71 at the end of the financial year
• Not hold a temporary visa at any time during the year (unless you are a New Zealand citizen or holder of a prescribed visa)
• Total super balance must be below the general transfer balance cap ($2,100,000 in FY2026-27) on 30 June of the previous year, and personal contributions must not exceed the non-concessional cap

Income Thresholds & Reduction

The reduction formula is: maximum co-contribution is reduced by $0.03333 for every $1.00 of income above $49,293. This produces a linear phase-out from $500 to $0 across the $15,000 income range.

Spouse Super Contribution Tax Offset

If you make a super contribution to your spouse's super fund, you may be eligible for a tax offset of up to $540. This is a separate scheme from the government co-contribution and is claimed by the contributing spouse (not the receiving spouse) on their tax return.

How It Works

You contribute after-tax money into your spouse's super fund (a non-concessional contribution to their account). When you lodge your tax return, you claim the spouse contribution tax offset. The offset directly reduces your tax payable. It is not a deduction, so it reduces tax dollar-for-dollar.

Eligibility & Thresholds

• Your spouse's total income (assessable income + reportable fringe benefits + reportable employer super) must be below $40,000
• Maximum offset of $540 applies when you contribute at least $3,000 and your spouse earns $37,000 or less
• The offset phases out between $37,000 and $40,000 spouse income
• Your spouse must be under age 75 at the time of the contribution
• You and your spouse must be Australian residents for tax purposes

The offset is calculated as 18% of the lesser of: (a) $3,000 minus the amount by which spouse income exceeds $37,000, or (b) the actual contribution amount. For a spouse earning $37,000 or less, contributing $3,000 gives 18% x $3,000 = $540.

Both Combined: Worked Example

Consider a couple where Partner A earns $90,000 and Partner B earns $36,000, mostly from a part-time job. Partner B is eligible for the full government co-contribution, and because Partner B earns $37,000 or less, Partner A can claim the full spouse offset.

The couple contributes $4,000 from after-tax income and receives $500 of government money into Partner B's super plus a $540 tax reduction for Partner A — a combined benefit of $1,040 for a $4,000 outlay. If Partner B earned $40,000 or more, the spouse offset would be nil, although the co-contribution would still be available up to $64,293.

Related Resources

• Superannuation Guide: complete guide to SG, contribution caps, and investment options
• Superannuation Calculator: project your retirement balance with employer and personal contributions
• Salary Sacrifice Calculator: model pre-tax super contributions and tax savings
• Income Tax Calculator: calculate your tax liability at any income level

Frequently Asked Questions