Low-Income Super Contribution and Super Co-contribution - Government Co-contribution Eligibility

 

Saving for retirement can be a daunting task, especially for those on a low income. However, there are government programs in place to help low-income earners boost their superannuation savings. In this article, we will be discussing two such programs: Low Income Super Contribution, Super Co-contribution, and the Government Co-contribution Eligibility for these schemes.

The Low Income Super Contribution (LISC) is a government initiative that aims to help low-income earners save for their retirement. Eligible individuals can receive a government contribution of up to $500 per financial year. To be eligible for LISC, you must have an adjusted taxable income of $37,000 or less and have made concessional (before-tax) contributions to your super fund. The maximum LISC payment is $500, and it is paid directly into your super account.

The Super Co-contribution is another government initiative designed to help low-income earners boost their super savings. If you make personal (after-tax) contributions to your super fund and earn less than $54,837 per year, you may be eligible for a Super Co-contribution from the government. The maximum co-contribution is $500, and it is paid directly into your super account. The amount of co-contribution you receive depends on your income and the amount of personal contributions you make.

To access these programs, you must first have a super fund. If you don't have one, you can choose one that suits your needs and open an account. Once you have a super fund, you can start making contributions to your account. To access the LISC and Super Co-contribution, you will need to meet the eligibility criteria and lodge a tax return.

Government Co-contribution Eligibility

To be eligible for the LISC and Super Co-contribution schemes, you must meet the following requirements:

- You must be under the age of 71 at the end of the financial year.

- You must earn less than the relevant income threshold for each scheme.

- You must have at least 10% of your income come from employment or self-employment.

- You must make personal contributions to your superannuation account.

How to Apply?

If you meet the eligibility requirements for the LISC and Super Co-contribution schemes, you don’t need to apply. The ATO will automatically assess your eligibility based on your tax return and superannuation contributions. If you are eligible, the government will deposit the co-contribution or LISC into your superannuation account.

In conclusion, Low Income Super Contribution and Super Co-contribution are two government initiatives that can help low-income earners boost their superannuation savings. By making concessional and personal contributions to your super fund, you may be eligible for a government contribution of up to $500 per financial year. If you're unsure about your eligibility or how to access these programs, it's best to speak to a financial advisor or your super fund provider.

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