New legislation has been passed to effectively remove the tax on super contributions for low-income earners.
From 1 July 2012, people earning less than $37,000 pa will receive up to $500 in their super account from the Government.
The payment amount will be 15% of the concessional contributions made to the person’s account, up to a maximum of $500.
This low-income contribution (LISC) will be paid in the following financial year by the Government directly to your super fund.
This is separate to the co-contribution so eligibility for one does not influence the other.