HomeSMSF NewsLow income superannuation contributions (LISC)

Low income superannuation contributions (LISC)

From 1 July 2012, individuals earning up to $37,000 will effectively not pay any tax on their superannuation guarantee contributions.

Under this measure, the 15% contributions tax will be refunded into the individual’s superannuation account.  This is an automatic measure, so individuals will not be required to apply for this refund, the ATO will verify an individual’s income using available data.

As with the co-contribution scheme, individuals who received less than 10% of their income through employment or business will not be eligible.  Individuals will only receive a refund, if their LISC entitlement is at least $20.

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Diana Morris founded The SMSF Accountant in 2010. Diana is a member of both CPA Australia and Chartered Accountants Australia and New Zealand and an affiliate of The Tax Institute. She holds a current public practice certificate, and is a registered tax agent. Diana has completed a Bachelor of Commerce degree and a Graduate Diploma of Chartered Accounting.