Imagine this: you’re reviewing your superannuation statement and notice a $1,000 boost—a sum you didn’t have to work extra hours to earn.
Sounds good, right? Well, here’s the good news: this could totally happen, but only if you take action.
If you’re a lower-income earner in Australia, the government has a generous offer that could add up to $1,000 to your super fund. But are you claiming what you’re entitled to, or are you unknowingly leaving money on the table?
Are You Eligible for This Super Boost?
Let’s break it down. The Australian Taxation Office (ATO) runs two programs that help lower-income Aussies grow their retirement savings:
The Low Income Super Tax Offset (LISTO): If your annual income is $37,000 or less, you could receive up to $500 annually.
The Super Co-Contribution Scheme: If you earn less than $60,400 and make a personal after-tax contribution to your super, the government may match half of your contribution, up to $500.
Combine these programs, and you could receive $1,000 to strengthen your retirement fund—all with minimal effort.
How Does It Work?
Here’s an example to illustrate how you might benefit. Let’s say your income is $35,000 per year, and your employer makes concessional (before-tax) contributions to your super. You may automatically receive a LISTO payment equal to 15% of these contributions, capped at $500.
Now, here’s where it gets even better: if you chip in $1,000 to your super from your after-tax income, the government will match 50% of that amount—another $500 straight to your super account. That’s $1,000 in total, just like that.
What Do You Need to Do?
For the LISTO, you don’t need to lift a finger. If your employer contributions are in order, and your super fund has your Tax File Number (TFN), the ATO will handle the rest when you lodge your tax return.
For the Super Co-Contribution Scheme, you’ll need to take a couple of steps:
- Put some extra money into your super fund from your after-tax income.
- Make sure your TFN is on file with your super fund.
The ATO will assess your eligibility when you lodge your tax return and arrange the payment automatically.
Why You Shouldn’t Wait
You might be thinking, “It’s only $1,000—how much difference can it make?” Absolutely, it does! Thanks to compounding interest, that $1,000 could grow into a much larger sum by the time you retire.
On the flip side, not claiming these payments is like walking past free money. You wouldn’t leave $1,000 sitting on a park bench, so why leave it out of your retirement savings?
How to Get Started
If you’re ready to take advantage of this opportunity, here’s a quick checklist to help you get started:
Check Your Income: Are you earning $60,400 or less?
Review Your Contributions: Ensure your employer is making concessional contributions and consider making a personal after-tax contribution.
Confirm Your TFN: Make sure your super fund has your Tax File Number on file.
Use the ATO Calculator: Estimate your potential LISTO or Super Co-Contribution entitlement.
Secure Your Financial Future
This opportunity isn’t just about adding a bit of money to your super today—it’s about laying the groundwork for a more secure and comfortable retirement. Taking a few simple steps now can set you up for years to come.
So why wait? This simple claim could boost your super by $1,000. Don’t miss out on a chance to strengthen your financial future.
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