Millions of Australians have just weeks left to secure a free $500 from the government. The cash boost is from the government’s superannuation co-contribution scheme and needs to be done before the end of the financial year.

The government scheme allows eligible lower and middle-income Australians to top up their retirement savings by partially matching individual after-tax contributions. The government can give you up to $500 if you add in $1,000 yourself, making it a 50 per cent return.

UniSuper state manager of advice Derek Gascoigne told Yahoo Finance that Aussies needed to leave enough time for their personal contribution to go into their super fund before June 30.

RELATED

• Superannuation change to give Aussie workers pay rise in weeks: ‘$29,000 boost’

• Forgotten ATO deductions that can boost your tax refund by $974

• Common $358 a day expense the ATO lets you claim on tax without receipts

“Doing it on the 30th of June doesn’t guarantee that the contribution will register in their account on that day to qualify them for the co-contribution,” he said.

“Definitely not leaving it until the last minute is probably the best advice I can give. Deadlines vary from fund to fund, but doing it at least a week or two beforehand should ensure that the contribution will fall safely into the bucket for this financial year.”

Gascoigne said the 50 per cent return was “pretty hard to beat” anywhere else. When compounding is taken into account, the move could make a “significant” difference to your retirement savings.

How does the super co-contribution scheme work?

If you are an eligible low or middle-income earner and make a personal non-concessional after-tax contribution to your super fund, the government will make a 50 per cent co-contribution of up to $500.

The co-contribution you receive depends on your income and how much you contribute to your super.

You need to earn $45,400 or less for the 2024-25 financial year to be eligible to claim the full $500 amount and contribute $1,000 to your super.

You can still get a contribution if you earn up to $60,400, but the amount you can claim will progressively reduce as your income increases.

“The contribution itself slowly diminishes once that person’s income reaches $60,400, where it cuts out altogether,” Gascoigne told Yahoo Finance.

“So there’s less benefit for someone to do this when they are a lot closer to $60,000 than $45,000.”

For example, someone earning $50,000 would be eligible for a maximum co-contribution of $347. That means they would only need to contribute $694, double the $347 co-contribution, to get the maximum benefit.