Low Income Superannuation Contribution (LISC)

What is it?

The Low Income Superannuation Contribution (LISC) is a Commonwealth Government super contribution paid into super accounts to help low income earners save for their retirement. It was introduced in July 2012.

To be eligible for LISC your adjusted taxable income needs to be $37,000 or less per year.

LISC is essentially a refund of the tax that's been deducted from your concessional contributions (salary sacrifice and/or employer contributions) over the course of the financial year.

The amount of LISC that you receive is 15% of concessional contributions your employer makes to a taxed super fund.

The maximum amount you can receive for a financial year is $500 and the minimum is $20.

Important: under current legislation, the LISC is payable for financial years from 1 July 2012 through to 30 June 2017.

Am I eligible?

You may be eligible for the LISC payment if:

  • your adjusted taxable income is $37,000 or below
  • concessional contributions are made into a taxed super fund during the financial year
  • at least 10% of your income is derived from employment or business sources, and
  • you are a permanent Australian or New Zealand resident.


What do I need to do to receive the payment?

Once you are a member of a taxed super fund you don't need to do anything other than lodge your annual tax return. The Tax Office will work out if you're eligible based on your tax return and contribution information reported by your super fund. The payment will then automatically be paid into your super account. For more information on LISC visit the Tax Office website.

Example

Melissa is an Admin Officer in the SA public sector. Her employer pays 9.5% SG on her annual salary of $25,000. Melissa is also making salary sacrifice contributions. Based on her taxable income, she may be eligible to receive a LISC payment.

 
Contribution type Contribution amount Tax deducted LISC entitlement
9.5% Employer cont. $2,375.00 $356.25 $356.25
1% Salary Sacrifice $250.00 $37.50 $37.50
Total $2,625.00 $393.75 $393.75