Superannuation is a contributory system: you only get out what you put in. Low Income Super Contribution The low income super contribution (LISC) is a measure introduced by the Government to ensure low income earners (those earning under $37,000 per annum) effectively pay no contributions tax on concessional contributions starting in the 2012/13 financial year. The LISTO is a government payment of up to $500 to help boost the super savings of low-income earners. Credit Rate Married Filing Jointly Head of Household All Other Filers* The Low Income Superannuation Contribution, or LISC, was brought in by the previous government to help people on low-incomes to save for retirement by offsetting contributions tax paid on their concessional super contributions, including superannuation guarantee paid by their employer. The low income superannuation contribution (LISC) came into effect on 1 July 2012 and effectively refunds the 15 per cent tax paid on contributions such as SG and salary sacrifice contributions for individuals with an adjusted taxable income up to $35,087 (from 1 July 2014). How much: the maximum payment you can receive for a financial year is $500 and the minimum is $20. LISTO was introduced to avoid the situation where low income earners pay more tax on their super contributions than if they received the same amount in their take home pay. Women more likely to access low-income super contribution. This is a contribution made using after-tax dollars, which you haven’t claimed as a tax deduction. If you are on a low income (earning under $37,000), you only pay tax on any … Jill may claim a 50% credit of $1,000 for her $2,000 IRA contribution on her 2020 tax return. Any contributions you make to your super fund from your after-tax income are called non-concessional contributions. How much will the super co-contribution be? $500 Low Income Super Contribution. Super can’t help many low income earners. And low-income earners don’t put much in. the receiving spouse’s income must be $37,000 or less for you to qualify for the full tax offset and less than $40,000 for you to receive a partial tax offset. If your total income is equal to or less than $37,697 in the 2018/19 financial year, or $38,564 in the 2019-20 financial year, and you make after-tax contributions of $1,000 to your super fund, you’ll receive the maximum co-contribution of $500. The purpose and effect is to eliminate the tax on the super contributions of low income earners. The annual non-concessional contributions cap for the 2020/21 financial year is $100,000. What it is: it’s a Commonwealth Government super contribution paid into super accounts to help low income earners save for their retirement. you must make a contribution to your spouse’s super. The ATO will pay your refund into your super after you lodge your tax return. After deducting her IRA contribution, the adjusted gross income shown on her joint return is $39,000. If you’re eligible, the government will automatically refund the tax you paid on any before-tax contributions (like salary sacrifice and employer contributions). Women are twice as likely as men to access the government’s super contribution for low-income earners, with many women continuing to access the payment as they start families and grow older, according to AMP research. Non-concessional contributions cap. How it works: essentially it's a refund of the tax that has been deducted from your employer super contributions. Posted on 31 October 2013 If you or your employer paid concessional (before tax) contributions to a complying superannuation fund you may be eligible for the low income superannuation contribution (LISC). 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