Government super contribution initiatives include:

  1. Super co-contributions
  2. Low-income super contributions (LISC) from 2012-13, and 2016-17
  3. Low income super tax offset (LISTO) from 1 July 2017. 

NOTE: 

  • LISC & Super co-contribution are two different initiatives 
  • All three are when government adds money to your super for rewarding you when you save money for your retirement. 
  • The All government co-contribution are:
    • not subject to tax when it is paid to your super fund
    • not included as income in your tax return
    • preserved in a super fund and can only be accessed when other preserved amounts can be accessed – that is, when a condition of release has been met.


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LISC (repealed and not applicable for tax return 2018 onward)

  • for low income earners 
  • Eligibility - you must meet all the following:
    • If you earn $37,000 or less a year 
    • employer has paid super into your account
    • not a temporary resident
    • 10% of your income is from your sole trader business or employment
  • gov will pay up to $500 to help low-income earners save for retirement.
    • The LISC is 15% of 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.
    • The maximum payment you can receive for a financial year is $500, and the minimum is $10. If you're eligible for less than $10, ATO will round this up to $10
  • LISC calculator

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LISTO (1/7/17 onwards)

  • Eligibility
    • employer made concessional before tax contributuions to your super fund
    • income up to $37,000, 
    • not hold a temporary resident visa
    • >10% of your total income is from employment/business sole trader
  • you may be eligible to receive a refund into your superannuation account. This is on the tax paid on your concessional superannuation contributions up to a cap of $500

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Super co-contribution 

  • eligiblity:
    • you made one or more eligible personal super contributions to your super account during the financial year
    • you pass the two income tests described below:  
      • income threshold test - total income (no deduction EXCEPT for business/sole-traders) must be less than the higher income thresholds
        • total income = assessable income + reportable fringe benefits + reportable employer super - allowable business deductions
      • 10% eligible income test - >10% of your total income must be from employment, business, or both. 
    • you were less than 71 years old at the end of the financial year
    • you did not hold a temporary visa at any time during the financial year (unless you are a New Zealand citizen or it was a prescribed visa)
    • you lodged your tax return for the relevant financial year.
    • you have a Total Superannuation Balance less than the transfer balance cap on 30 June of the year before the relevant financial year
    • you have not contributed an amount more than your non-concessional contributions cap for the relevant financial year.
  • Co-contribution income thresholds + AMP brochure



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