Low income superannuation contribution
If you have an annual income of less than $37,000 you could be eligible for the Australian Government’s low income superannuation contribution (also known as LISC).
How does it work?
The LISC is simply a refund of the 15% contributions tax you pay on your concessional contributions when they reach your super account. Concessional contributions include:
- All employer contributions (including superannuation guarantee (SG) contributions)
- Money you add to your through salary sacrifice
- Any contributions you claim a tax deduction for
If you’re eligible, you will receive a refund (into your super account) of your concessional contributions up to a maximum of $500.
Am I eligible for the LISC?
You must have an adjustable taxable income of $37,000 or less for the financial year and:
- have concessional contributions paid into your super account
- at least 10% or more of your total income is from business or employment
- not hold a temporary visa
How do I get the refund?
When you lodge your tax return the Australian Tax Office (ATO) will assess it and work out your total adjustable income. If you’re eligible for the LISC, any refund you’re entitled to will paid directly into your super account.
If you don’t need to lodge a tax return the ATO will still work out if you are eligible for the LISC and pay any refund owing to you directly into your super account.
For more information, download our Super contributions guide.