Two payments available to low-income and middle-income earning Australians can boost superannuation balances by up to $1000 a year, according to the Australian Taxation Office (ATO).
The low-income super tax offset (LISTO) payment is paid automatically to eligible earners, while the super co-contribution scheme payment matches a taxpayer’s contributions dollar-for-dollar up to $500.
Both payments are designed to bolster retirement savings.
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For a LISTO payment, taxpayers will need to earn less than $37,000, have at least 10 per cent of that come from employment, and have their tax file number connected to their superannuation fund.
Payments equate to 15 per cent of pre-tax (concessional) contributions made by a taxpayer or their employer to their fund that year, up to $500.
“This is designed to ensure that low-income earners generally don’t pay more tax on their super contributions than on their take-home pay,” the ATO said.
For middle-income earners, or low-income earners, the super co-contribution scheme bases payments on both super contributions and income.
Recipients of this payment will need to have made an after-tax (non-concessional) contribution, and be under the age of 71, to be eligible.
For taxpayers who have made that contribution, the ATO will assess their eligibility automatically.
The co-contribution will match taxpayer contribution with 50c to each dollar, for those earning under the lower income threshold.
That threshold changes each year, and is $45,400 in the 2024-25 financial year, up more than $1500 from $43,445 in the 2023-24 financial year, according to H&R Block.
The upper threshold is set at $15,000 higher, and above that, no co-contribution is made by the government.
Between the upper and lower threshold, the value of the co-contribution is phased down at a rate based on each dollar earned above the lower threshold.
The ATO co-contribution calculator can help taxpayers find an estimate specific to their circumstances.
More information, including a full list of eligibility requirements for the LISTO payment, and the co-contribution scheme payment, can be found on the ATO website.