Eligibility - NB: there are temporary reductions from the May 2009 Federal Budget,  these are detailed at the bottom of this page.

Henry Review Proposals   From 1 July 2012, low income earners government contribution:  The Government will provide a contribution equal to 15% of concessional contributions made, up to $3,333, for low income earners with an adjusted taxable income of up to $37,000. The maximum Government contribution paid will be $500 (not indexed).
From 1 July 2008, you will be eligible for the co-contribution if:
  • you make a personal super contribution by 30 June each year into a
    complying super fund or retirement savings account
  • your total income is less than $60,342 (this is indexed annually to
    reflect changes in average wages)
  • 10% or more of your total income is from eligible employment, running
    a business or a combination of both
  • you are less than 71 years old at the end of the year of income
  • you do not hold an eligible temporary resident visa at any time during the year
  • and you lodge your income tax return.
You are not entitled to a co-contribution for any amount of personal contributions you choose to claim as a tax deduction or is a tax deduction to your employer.  This includes salary sacrifice and SGC's.

The contributions.  If you are eligible as per the above criteria and if you earn $30,342 or
less in a financial year, then for every dollar of personal contribution you make to a complying
super fund - up to a maximum of $1,000 - the Government will contribute $1.50 (up to a maximum
of $1,500).  For each dollar you earn over the $30,342 threshold, the co-contribution reduces by
5 cents and ceases completely at annual earnings of $60,342.  As an example, a person earning
$50,000 per year contributing $1,000 or more to their fund can expect to receive a Government
co-contribution of $517.  A person on $40,000 per annum could receive a maximum of $1,017.

How to claim.  Lodge your tax return.  The ATO perform data matching and automatically send
the appropriate amount directly to your superannuation fund or Retirement Savings Account.

Temporary reduction of the Government co-contribution from 1 July 2009 to 30 June 2014
are as per the following table.  However, the Henry Taxation Review recommended
additional alterations; namely the maximum Government Co-contribution be capped
at $1,000 (in addition to the $500 contribution tax (maximum) off-set for persons with
adjusted taxable income (ATI) of $37,000 or less.

  2009 - 2012 2012 - 2014 2014 - 2015
Maximum co-contribution payable $ 1000 $ 1250 $ 1500
Reduction for each $1 of total income above threshold 3.333 cents 4.167 cents 5 cents