The Super Co-Contribution (SCC) AKA the Government Co-Contribution works as follows:

1. Non-concessional contributions (NCC): are made when individuals make a non-tax-deductible contribution out of after-tax income.
2. Total Income threshold test: the personal income tax return (ITR) of the person reports their income received for the relevant financial to be between the minimum and maximum levels set for the SCC. For the financial year ended 30 June 2020, this is between $38,564 and $53,564. 
3. 10% eligible income test:  To satisfy this test 10% or more of the total income (as per the ITR) must come from employment and/or business.

The amount of the co-contribution is 50% of the NCC made up to $500. So, the SCC maxes out at an NCC of $1,000.

In summary, this means if you make non-tax-deductible contributions to your superannuation fund of $1,000 or more you may receive the SCC of $500. This is clearly an incentive to encourage taxpayers in this income bracket to make additional personal contributions.  Read the full summary of the SCC here remember the eligibility criteria are fairly detailed, so ensure you check all the criteria here before acting - Eligibility for the super co-contribution.

The SCC is entirely different from the LISTO, read our update on the Low Income Super Tax Offset (LISTO) here. As always, seek professional advice, taking your personal situation into account before acting. If you need assistance email us on wealth@primarius.net.au