The super co-contribution is one of the few places the federal government adds money straight into your super, and it is easy to miss. If you earn under $64,293 in 2026-27 and put some of your take-home pay into super, the government may add up to $500. With tax returns due by 31 October and the ATO paying most co-contributions between November and January, this is the time of year the payment lands. For anyone also saving a car deposit or planning a loan application, the co-contribution is worth understanding properly, because the money that earns it comes out of the same pay packet your lender will look at.
This is general information about how the scheme works, checked against the Australian Taxation Office (ATO) today, and how voluntary contributions can show up in a car loan application. It is not personal financial, tax or super advice.
What is the super co-contribution?
The super co-contribution is a government payment into your super fund when a low or middle income earner makes personal non-concessional contributions, meaning after-tax money you pay into super yourself from your take-home pay. Since 1 July 2012 the matching rate has been 50% and the maximum payment has been $500.
In practice, if your total income is at or below the lower threshold and you contribute $1,000 of after-tax money during the financial year, the government contributes the maximum $500. If you contribute less, the payment is smaller. You do not apply for it. The ATO works out your eligibility when you lodge your tax return and pays it to your fund automatically, as long as the fund has your tax file number.
The 2026-27 super co-contribution thresholds
The ATO's published thresholds are:
- 2026-27: lower income threshold $49,293, higher income threshold $64,293, maximum $500.
- 2025-26: lower income threshold $47,488, higher income threshold $62,488, maximum $500.
If your total income is between the two thresholds, the maximum you can receive reduces progressively as your income rises. At or above the higher threshold you receive nothing. If your calculated entitlement is under $20, the ATO pays the minimum of $20. The lower threshold is indexed each year in line with average weekly ordinary time earnings, and the higher threshold sits $15,000 above it.
"Total income" here is not simply your salary. For this test it is your assessable income plus reportable fringe benefits and reportable employer super contributions, less allowable business deductions if you run a business. Salary sacrifice counts as a reportable employer super contribution, so a large sacrifice arrangement can push your total income for this test higher than you might expect. For context on where typical incomes sit, our piece on the average Australian salary in 2026 covers the ABS figures.
Who is eligible
Under the ATO's rules, to receive a co-contribution you must:
- make one or more personal non-concessional contributions to a complying super fund during the financial year
- pass the income threshold test and the 10% eligible income test
- be under 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 hold a prescribed visa
- lodge your tax return for that year
- have a total super balance below the general transfer balance cap on 30 June of the previous financial year, and not exceed your non-concessional contributions cap
The 10% test means at least 10% of your total income must come from employment, running a business, or both. For this test, business income is not reduced by business deductions, which the ATO says is so self-employed people are not disadvantaged in a low profit year. Income from investments such as interest, rent, dividends and trust distributions does not count as eligible income.
Two traps are worth knowing. First, contributions made through salary sacrifice, or personal contributions you claim as a tax deduction, are concessional contributions and do not attract a co-contribution. Second, your contributions must reach the fund by 30 June to count for that financial year, so a payment sent on 29 June may arrive too late. If you are on a temporary visa, our guide to getting a car loan on a temporary visa explains how lenders approach that situation.
The low income super tax offset is separate
The low income super tax offset (LISTO) is a different payment. If your adjusted taxable income is $37,000 or less, the ATO may pay 15% of your concessional contributions (including the super guarantee your employer pays) back into your super, up to $500, with a minimum of $10. You do not need to make any voluntary contribution to receive it, and your fund needs your tax file number to accept it. Someone on a low income can potentially receive both the LISTO and a co-contribution in the same year.
When the payment arrives
The ATO pays most co-contributions between November and January for personal contributions made in the previous financial year. So if you made eligible contributions in 2025-26 and lodge your tax return by 31 October, a payment would typically land in your fund over the coming summer and appear on your next member statement. If you have more than one fund, nominate the fund you want it paid to before you lodge. Our article on why your 31 October tax return matters for your car loan covers the other reasons to lodge on time if a loan is coming up.
The co-contribution is not taxed when it is paid into your fund and is not included as income on your tax return. Like the rest of your super, it is preserved until you meet a condition of release, which means it cannot be used for a car deposit. Our guide on whether you can use super to buy a car explains why early release is so limited.
How voluntary contributions show up in a car loan application
When you apply for a car loan, lenders generally assess the income that reaches you, your regular expenses and how you manage money, often using recent payslips and bank statements. A personal super contribution is paid from your take-home pay, so it reduces the cash available for a deposit and appears as an outgoing payment on your statements.
A small regular contribution is unlikely to be the deciding factor in most applications, but it is a commitment you have chosen, and an assessor reading your statements will see it. Our guide to what lenders check on your bank statements explains how regular transfers are read. If you are building a deposit at the same time, every dollar sent to super is a dollar that is locked away until retirement rather than sitting in your savings account. See how much deposit you need for a car loan for how a deposit can change the loan you are offered.
To put the numbers in perspective, $1,000 over a year works out to about $38.46 a fortnight, or about $19.23 a week. The ATO's own example has someone on $35,000 paying $40 a fortnight from take-home pay, reaching $1,040 for the year and qualifying for the maximum $500.
Self-employed borrowers
Sole traders and partners can qualify because business income counts towards the 10% eligible income test. The trade-off is different from the one in our catch-up super contributions guide: a co-contribution requires an after-tax contribution you do not claim as a deduction, so it does not lower the taxable income on your tax return. If you rely on tax returns to verify income for a loan, our guide to low doc ABN car loans covers what lenders may accept when your financials are not ready.
Planning around a loan application
A few practical points, framed as general information:
- Check the timing. Contributions can be spread across the year. If a car loan application is coming up in the next few months, you may prefer to keep regular contributions small and visible rather than making one large lump sum just before applying.
- Keep your budget honest. If you list living costs in an application, include regular voluntary contributions you intend to keep making. Our guide to household expenses and loan applications explains what lenders check.
- Know where the money goes. The co-contribution boosts retirement savings, not borrowing power. It will not show up as income or savings on a loan application.
- Read the bigger picture. Our super guide for borrowers covers the 12% super guarantee, contribution caps and what your balance means when you borrow.
Key points
- In 2026-27 the super co-contribution pays up to $500 if your total income is at or below $49,293, phasing out to nothing at $64,293.
- You need to make after-tax personal contributions that you do not claim as a deduction, pass the income and 10% tests, and lodge a tax return.
- The ATO pays most co-contributions between November and January for the previous financial year.
- The money is preserved in super and cannot be used for a car deposit or counted as income by a lender.
- If you are comparing finance, you can explore our car loans page, browse lender profiles, or look at personal loans for other purchases.
