If you earn less than $60,400 per year, the government offers several incentives to help boost your super — including direct payments into your account that cost you little or nothing. Many low-income earners don't know about these, and leave hundreds or even thousands of dollars on the table every year.
Low Income Superannuation Tax Offset (LISTO)
The LISTO effectively refunds the 15% contributions tax on your employer's SG contributions if your adjusted taxable income is $37,000 or less.
- Maximum benefit: $500 per year
- How it works: Automatically calculated by the ATO and paid directly into your super fund after you lodge your tax return
- You don't need to apply — it's automatic, provided your super fund has your TFN
Government co-contribution
If you earn less than $60,400 and make a personal after-tax (non-concessional) contribution to your super, the government will match 50 cents per dollar up to a maximum of $500.
| Your income | You contribute (after-tax) | Government co-contribution |
|---|---|---|
| $37,000 | $1,000 | $500 |
| $45,400 | $1,000 | $500 |
| $50,000 | $1,000 | $347 |
| $55,000 | $1,000 | $180 |
| $60,400+ | $1,000 | $0 |
To receive the co-contribution, you must:
- Make a personal after-tax contribution to your super during the financial year
- Earn at least 10% of your income from employment or business
- Lodge a tax return for the relevant year
- Not hold an eligible temporary visa
Spouse contributions
If you have a partner who earns more, they can contribute to your super and claim a tax offset of up to $540. The maximum offset applies when they contribute $3,000 or more and your income is $37,000 or less. It phases out entirely above $40,000.
Practical steps for low-income earners
- Make sure your fund has your TFN — without it, you won't receive the LISTO, and extra tax may be deducted from contributions
- Contribute $1,000 after tax each year to trigger the co-contribution. Even $500 will get you a $250 co-contribution.
- Ask your partner about spouse contributions if applicable
- Consolidate your super into one low-fee fund — small balances are eroded fastest by fees. See our consolidation guide.
- Review insurance — default insurance premiums on a small balance can eat a disproportionate amount of your super
Why it matters more for lower earners
At lower income levels, every dollar of super matters more. A person earning $40,000 for 30 years will accumulate roughly $310,000 in super from SG alone (at 12%, 7% returns). Adding $1,000/year in personal contributions + $500 co-contribution could boost that to $380,000 — an extra $70,000 for a modest annual commitment.