Axing LISC allows for opting-out of superannuation argument

The consequences of the Government’s decision to axe the Low Income Superannuation Contribution is being used as an argument in favour of allowing low income earners to opt-out of receiving Superannuation Guarantee contributions. This week saw front-page reports in the News Corp papers that the Government was considering allowing low income earners to opt-out of… Continue reading Axing LISC allows for opting-out of superannuation argument

Super funds no longer required to separately report LISC

Under new regulations superannuation funds are no longer required to separately report amounts of Low Income Superannuation Contributions (LISC) received to members. Previously regulation 7.9.20 of the Corporations Regulations 2001 said that super fund periodic statements must separately state the amounts of the co-contribution and LISC received.

Government plans to extend LISC reporting exemption

A Treasury consultation submission by the Association of Superannuation Funds of Australia (ASFA) has revealed that the Government plans to extend an exemption for superannuation funds from needing to separately report the Low Income Superannuation Contribution (LISC) to members. The ASFA submission says they were asked for comment on the draft Tax and superannuation Laws… Continue reading Government plans to extend LISC reporting exemption

Government planning to remove LISC disclosure requirements

The Australian Institute of Superannuation Trustees (AIST) has called on the Government to not change the requirement to separately disclose the Low Income Superannuation Contribution (LISC). The AIST claims that the Government is planning to repeal regulations which require that the LISC be separately disclosed on super fund member statements. If repealed the LISC could… Continue reading Government planning to remove LISC disclosure requirements

Low Income Super Contribution (LISC)

The Low Income Superannuation Contribution, or LISC, was brought in by the previous government to help people on low-incomes to save for retirement by offsetting contributions tax paid on their concessional super contributions, including superannuation guarantee paid by their employer. However, it may be short-lived, as the current government has passed legislation which will stop… Continue reading Low Income Super Contribution (LISC)

LISC should be indexed to increases in super guarantee

When the Low Income Superannuation Contribution (LISC) was introduced it was meant to offset the contributions tax low-income earners paid on their superannuation. This was because low-income earners would pay more on their super contributions then they would on wages received. However because the LISC was set at a fixed amount, $500, and didn’t take… Continue reading LISC should be indexed to increases in super guarantee

Superannuation guarantee to stay at 9.5% until July 2021

Government changes to legislation mean that the superannuation guarantee is likely to stay at 9.5% until 1 July 2021, and only reach 12% in July 2025. The Government made a deal with the Palmer United Party to pass the repeal of the Minerals Resource Rent Tax. As part of the deal the LISC will be… Continue reading Superannuation guarantee to stay at 9.5% until July 2021

Treasurer wants power to set superannuation guarantee rate

The Government has introduced a bill to the Parliament which would give the Treasurer the power to set the superannuation guarantee rate by legislative instrument. This is contained in the Minerals Resource Rent Tax Repeal and Other Measures Bill 2014, which is the third attempt to repeal the MRRT, change the rate of the super guarantee and… Continue reading Treasurer wants power to set superannuation guarantee rate

Higher contributions tax for those on over $180,000: Mercer

Extending Division 293 tax to everyone on the highest income bracket is one of the four points in a plan to improve the superannuation system released by consulting firm Mercer. The four points of the plan are: Division 293 tax to apply to everyone on the highest tax rate bracket No-one in the 19% tax bracket… Continue reading Higher contributions tax for those on over $180,000: Mercer

Senate removes LISC repeal & SG rate change from MRRT bill

Late Thursday night the Senate passed the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 [No. 2], though with a number of amendments – including retaining the current Super Guarantee rates and keeping the Low Income Superannuation Contribution (LISC). However the House of Representatives has refused to accept these amendments and, as the Senate… Continue reading Senate removes LISC repeal & SG rate change from MRRT bill