The Low Income Superannuation Contribution is a superannuation payment made by the Government into the superannuation account of Low Income Earners to help them save for retirement.

How Much is the Low Income Superannuation Contribution?

You may be eligible to receive a Low Income Superannuation Contribution of between $10 and $500.

The actual amount received is determined by the level of Concessional Contributions made into your account.

Eligibility Requirements for the Low Income Superannuation Contribution

You need to meet all of the following requirements to be eligible for the Low Income Super Contribution:

  • you or your employer makes Concessional Contributions into a complying superannuation fund (including SG contributions). A Concessional Contribution is a contribution made into superannuation where a tax deduction has been claimed – pre-tax contributions.
  • You earn $37,000 p.a. or less. You ‘Adjusted Taxable Income‘ is used to calculate your earnings.
  • You have not held a temporary resident visa at any time throughout the year.
  • You lodge an income tax return and 10% or more of your total income is derived from business and/or employment OR you do not lodge an Income Tax Return and 10% or more of your total income comes from employment.

How do you receive your Low Income Superannuation Contribution?

You don’t need to do anything! The ATO will know the contributions that have been made when it receives your tax return, or will be notified by your superannuation fund if you don’t lodge a tax return.

BUT… It is important to make sure your superannuation provider has your Tax File Number on record. Without this, you cannot receive the Low Income Super Contribution.

How is the Low Income Superannuation Contribution calculated?

Your Low Income Super Contribution (LISC) is equivalent to 15% of the Concessional Contributions made into your superannuation account. It’s as simple as that.

Low-Income-Superannuation-Contribution

For example, if your employer paid $3,000 worth of SG Contributions into your account throughout the financial year, you will automatically receive a LISC of $450 ($3,000 x 15%).

If you would like anything clarified or have any further questions about Low Income Superannuation Contribution or any other topics, please do not hesitate to leave a comment in the section below and I will endeavour to respond within 24 hours.

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Chris Strano

Chris Strano is a specialist independent superannuation author for SuperGuy.com.au - one of Australia's leading superannuation information resources.

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