The 2016 Budget announcement contained a proposal for a non-refundable tax offset to superannuation funds, to reduce the tax paid on concessional contributions which are made for or by low income earners.
“Low income” refers to an adjusted taxable income of $37,000.
The offset is available from 1 July 2017 for 2017-18 and later years.
The offset will operate in similar terms to the earlier “LISC” scheme which ceased on 30 June 2017. The LISC provided a rebate to the super fund account of the low income member at the rate of 15% of eligible contributions, thus matching the tax on contributions, and up to a ceiling of $500.
This page was last modified on 22 Sept 2017