Q: Is the Government offering any superannuation assistance for low-income earners?
A: Yes, from July 1 the Low Income Superannuation Tax Offset (LISTO) replaces the Low Income Superannuation Contribution scheme, which was a very similar benefit that expired on June 30.
Anyone with taxable income up to $37,000 will receive a refund into their superannuation account of the tax paid on the concessional superannuation contribution.
The measure deals with a situation where low income earners pay a lower rate of income tax than the 15 per cent tax on concessional superannuation contributions.
Eligible fund members will be paid via a contribution benefit into their super fund account. The refund is capped at $500 a year.
The Government has estimated that around 3.1 million people – two-thirds of them women – will benefit from the LISTO in the 2017/18 financial year.
Low-income earners will still be liable for the 15 per cent tax on fund earnings.
Fund members don’t have to do anything to get the contribution benefit. The Australian Taxation Office will assess eligibility and make the adjustments.