Upcoming changes to the low income superannuation contribution
The LISC payment will be ending at the end of the 2016/2017 financial year, however. subject to legislation being passed the LISC payment will be replaced with the Low Income Superannuation Tax Offset (LISTO), from 1 July 2017. The LISTO will offer the same benefits as the LISC.
This initiative is to help boost your retirement savings. If you’re eligible, the Australian Government will refund the tax you paid on your before-tax contributions back into your super, up to a maximum of $500.
You may be eligible to receive the LISC if your taxable income is less than $37,000 a year.
You don’t need to apply – if you’re eligible the government, will pay your LISC directly into your super fund account after you lodge your tax return.