The maximum co-contribution of $500 is reduced by 3.333 cents for each $1 of income earned over $45,400 and cuts out when your total adjusted taxable income reaches $60,400 (thresholds for 2024/25).
For example, if your total income was $25,000 and you made a personal non-deductible contribution of $1,000 to super prior to 30 June this financial year, the government would make a co-contribution of $500 to your super fund.
Let’s assume you earn $50,400, which is $5,000 above the lower threshold of $45,400. The maximum co-contribution will reduce by 3.333 cents for every $1 in excess of $45,400.
Therefore, the reduction is $0.03333 times $5,000, which is $166.65. So, the maximum co-contribution will now be $333.35 (i.e. $500 – $166.65).
To determine your eligibility, the Australian Tax Office has an online calculator at www.ato.gov.au.