More free money for low income earners

Low income superannuation contribution (LISC)

From 1 July 2012, the government provides a low income superannuation contribution (LISC) of up to $500 annually for eligible individuals on adjusted taxable incomes of up to $37,000.

The amount payable under this measure will be calculated by applying a 15% matching rate to concessional contributions made by, or for individuals on adjusted taxable incomes of up to $37,000, with an annual maximum amount payable of $500 (not indexed). The amount will be paid into a superannuation account of the individual to directly boost their retirement savings.

Example: So if you are earning $33,000 as a gross wage, your employer contributes 9.25% into your super fund ($3,053).  Your adjusted taxable income remains at $33,000 which is under the threshold.  The government will then pay 15% of the $3,053 or $458 contribution into your super fun, free of charge.

Concessional superannuation contributions made from 1 July 2012 will be eligible for the LISC. The first payments will be made in the 2013–14 income year.

For more information, give Amanda or Erina a call on 9585 7555 or email Amanda

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