If you are a low-to-middle income earner, the Australian Government may help to boost your super savings through the super co-contribution payment.
Eligible individuals can take advantage of the co-contribution payment by making personal super contributions to their super fund. The government will then match your contributions up to a maximum amount.
Eligibility requirements include earning below a maximum income threshold, making a personal contribution to super in the income year and lodging your tax return.
Any co-contribution amount paid into your account will be shown on your annual benefit statement for the relevant financial year.
For more information about the super co-contribution payment, including eligibility and how much you might get, visit the Australian Taxation Office website.
Low income contributions
Low income contributions are made by the government to the superannuation funds of low income earners. The purpose of these contributions is to ‘refund’ the 15% tax paid on the concessional (before-tax) super contributions you or your employer pays into your super fund.
For the 2012-13 to the 2016-17 financial years this contribution was called a low income superannuation contribution (LISC). From 2017-18 financial years onwards, this contribution is called a low income superannuation tax offset (LISTO).
The maximum payment you can receive from LISC and LISTO for a financial year is $500, and the minimum is $10. If you're eligible for less than $10, the ATO will round this up to $10.
For more information visit the Australian Taxation Office website.