Australian Low income superannuation contribution
This has now been SUSPENDED following changes to the Minerals Resource Rent Tax Repeal and Other Measures Bills in September 2014
The low income superannuation contribution (LISC) is a superannuation contribution made on behalf of individuals with an adjusted taxable income (ATI) of $37,000 or less in an income year. The maximum contribution amount payable is $500. The contribution is designed to effectively return the tax paid on concessional contributions by an individual’s superannuation fund.
The LISC was funded with the expected revenue from the MRRT, and is being repealed with the removal of the MRRT. The Government will revisit incentives in superannuation for low income earners once the Budget is back in a strong surplus.
The amendments repeal the framework for the LISC contained in Part 2A of the Superannuation Government (Co-contribution for Low Income Earners) Act 2003 (SGLIA), and make consequential amendments to other areas of that Act to reflect the repeal of the LISC. [Schedule 7, items 1 to 6, subsection 5(2), Part 2A, subsection 49(1), section 55 (note), section 56 (definitions of concessional contributions and low income superannuation contribution]