Low income superannuation tax offset

If you earn less than $37,000 pa you may be eligible for a tax rebate of up to $500 each financial year on your before-tax super contributions.

What are before-tax super contributions?

  • Superannuation Guarantee contributions your employer paid
  • any salary sacrifice contributions your employer paid
  • any contributions you've made where you can claim a tax deduction. 

The low income superannuation tax offset compensates for the usual 15% contribution tax that applies on before-tax contributions, meaning you're not paying extra tax by having your income paid into your super fund. 

Make sure we have your Tax File Number

The rebate will be paid directly into your super account. You must make sure your super fund has your Tax File Number, otherwise the Australian Taxation Office (ATO) won't be able to make your payment. 

Who is eligible for the low income superannuation tax offset?

To be eligible for the rebate you must:

  • have before-tax contributions paid into a complying super fund
  • have an adjustable taxable income below $37,000 pa (if you're required to lodge a tax return)
  • not hold a temporary resident visa (New Zealand citizens in Australia don't hold temporary resident visas and, as such, are eligible for the payment)
  • derive 10% or more of your total income from business or employment.

You don't need to do anything to receive the payment. The ATO will work out your eligibility when you lodge an income tax return or, if you don't lodge a tax return, other information the Tax Office collects. 

You can check whether you've received the payment on your member statement. However, keep in mind that it may take up to 14 months from the end of the financial year to receive your payment.

Want to know more?

For more information about the low income superannuation tax offset visit the ATO website. You can also use the ATO's calculator to check if you're eligible and how much you may be entitled to.