Government Low Income Super Contribution
The low income super contribution (LISC) is a government payment to help low income earners save for their retirement.
From the 2012-13 income year, your LISC is 15% of the concessional (before tax) super contributions you or your employer make. The maximum payment you can receive for a financial year is $500 and the minimum is $20.
You are eligible for a LISC if:
- 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 temporary resident visas and are therefore eligible for the payment)
- 10% or more of your total income is derived from business or employment
- The amount payable is $20 or more.
The ATO will pay a LISC directly to your complying super fund. Make sure your fund has your tax file number as it cannot accept a LISC on your behalf without it. It may take up to 14 months from the end of the financial year for the payment to reach your fund.
Your super fund will show the LISC on your member statement.
For more information about the low income super contribution, refer to Low income super contribution.
See A Grade Tax Accountants Penrith for all your Taxation Services and Self Managed Super Fund advice.
Business Tax Newsletter
Subscribe & stay informed on the latest Business Tax News!
Personal Tax Newsletter
Subscribe & stay informed on the latest Personal Tax News!