Low Income Super Contribution
You may have heard some minor buzz about government-funded super to the value of $500; we thought we would pull together the basic facts to give you an idea about who can access the contribution and how it can be done.
WHAT IS IT?
The Low Income Super Contribution (LISC) is a super payment by the government of up to $500 per financial year aimed at helping low income earners save for their retirement.
As of July 1, the LISC is 14% of the concessional contributions (or before tax contributions) made by you or your employer on your behalf.
AM I ELIGIBLE?
If your situation satisfies the following requirements, then you are eligible for the low income super contribution:
- You have concessional contributions for the year made to a complying super fund
- Your adjusted taxable income does not exceed $37,000 (if you are required to lodge a tax return)
- You are not a holder of a temporary resident visa (New Zealand citizens in Australia do not hold a temporary resident visa and, as such, are eligible for the payment)
- 10% or more of your total income is derived from business of employment
- The amount payable is $20 or more
If you do lodge a tax return, then the government will use the information to work out your eligibility for a LISC.
If you do not lodge a tax return, then you do not have to do anything as the government will use alternate information that they have collected to work out your eligibility; however, this second process can take up to 14 months to complete.
If you want to find out more about your super and what contributions you can receive, here are some hot links to help you navigate: