New government super payment for low-income earners

New Government Super Payment commenced on 1 July 2012 – the low income super contribution. This payment aims to boost the super of low-income earners to help them save for their retirement.

Who is eligible?

The low income super contribution is for people who earn $37,000 or less per year in adjusted taxable income.

What do you need to do?

If you are eligible, you will receive a government super payment equal to 15% of the concessional (before tax) contributions that you or your employer makes from 1 July 2012.

It is not necessary to apply for a low income super contribution – it will be paid automatically into your super fund.

The first low income super contributions will be paid in the 2013–14 income year.

Please ensure super fund has your tax file number (TFN) listed on your account to ensure the payment goes through.

How much will you receive?

The maximum payment that you can receive for a financial year will be $500, and the minimum is $20.

For more information please follow the ATO’s link or contact us for more customised information for your particular needs.