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Any contributions you make to your super fund from your after-tax income are called non-concessional contributions. If you are on a low income (earning under $37,000), you only pay tax on any … 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. Women more likely to access low-income super contribution. Jill may claim a 50% credit of $1,000 for her $2,000 IRA contribution on her 2020 tax return. After deducting her IRA contribution, the adjusted gross income shown on her joint return is $39,000. 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. Super can’t help many low income earners. Superannuation is a contributory system: you only get out what you put in. Credit Rate Married Filing Jointly Head of Household All Other Filers* 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 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). The LISTO is a government payment of up to $500 to help boost the super savings of low-income earners. 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). How much: the maximum payment you can receive for a financial year is $500 and the minimum is $20. $500 Low Income Super Contribution. And low-income earners don’t put much in. 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. 2021 Saver's Credit. Non-concessional contributions cap. How it works: essentially it's a refund of the tax that has been deducted from your employer super contributions. This is a contribution made using after-tax dollars, which you haven’t claimed as a tax deduction. Low Income Superannuation Contribution (“LISC”) From 1 July 2012 the Government Low Income Superannuation Contribution scheme (LISC) provides a superannuation benefit of up to $500 for lower income earners with concessional superannuation contributions during the year. The ATO will pay your refund into your super after you lodge your tax return. The purpose and effect is to eliminate the tax on the super contributions of low income earners. If you’re eligible, the government will automatically refund the tax you paid on any before-tax contributions (like salary sacrifice and employer contributions). 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. Put simply, all compulsory Superannuation Guarantee (SG) contributions paid by your employer are taxed at 15% when they go into your super account. How much will the super co-contribution be? you must make a contribution to your spouse’s super. 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. 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.

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