Retirement planning could be a daunting task, especially for those on a tight budget.

Yet, for low-income earners in Australia, the government might lend a helping hand to bolster their superannuation.

Several benefits could see up to $1,000 paid into super funds, so make sure you're getting all the benefits of this massive boost.

The Australian Taxation Office (ATO) called on Aussies to claim these superannuation payments if they meet the eligibility criteria.

Two key programs could help lower-income earners in growing their retirement savings, and here's how everyone, especially seniors, can take advantage of them.

The super funds schemes could be a welcome boost, especially during the holiday season. Image Credit: Pexels/Miles Burke

Low Income Super Tax Offset (LISTO)

The Low Income Super Tax Offset (LISTO) is a government initiative that provides up to $500 in payments to low-income earners.

Australians with an annual income of $37,000 or less are eligible for this offset.

The LISTO payment is 15 per cent of the concessional (before tax) super contributions that either you or your employer make—capped at $500 per year.

To receive LISTO payments, super funds should have your tax file number (TFN) on record.

For those who lodged a tax return, the LISTO will be paid directly into your super fund account based on your tax return and information from your super fund.

Otherwise, the ATO will determine your eligibility using information from your super fund and other sources and will pay it directly to your fund.

Super co-contribution scheme

The Super Co-contribution Scheme is another way to increase your super savings.

For those who earned less than $60,400 for the 2024-25 financial year and make voluntary after-tax contributions to their super, the government should match their contributions with a maximum cap of $500.

To get the full benefits, the income needs to be less than $45,400, and you need to contribute $1,000 to your super.

There's no need to apply for the super co-contribution.

As long as the tax return gets lodged, the ATO should immediately check one's eligibility and make the contribution if qualified.

Maximising benefits

To get the most out of these programs, here are a few steps to follow:

• Use the ATO's calculator to estimate your LISTO and understand the requirements for the Super Co-contribution Scheme.
• If you can make after-tax contributions to your super, you can take advantage of the government's co-contribution.
• Make sure your super fund has your current tax file number and other relevant details to ensure your benefits are on time.
• Even if you're not required to lodge a tax return, doing so could help you receive any co-contributions you're entitled to.

These government initiatives should help everyone, including seniors on a fixed income, build a more secure financial future.

Key Takeaways

• Low-income Australians could receive up to $1,000 in payments into their superannuation funds from the government through LISTO and co-contribution schemes.
• To qualify for a LISTO payment of up to $500, individuals must have an annual income of $37,000 or less.
• The super co-contribution scheme could also send a payment of up to $500 for individuals who earn $60,400 or less and make a personal after-tax contribution to their super.
• The ATO encouraged eligible Australians to update their details, including tax file numbers, and to lodge a tax return to process these contributions.

Have you taken advantage of these superannuation benefits? Share your experiences and tips in the comments section below to help fellow seniors navigate their way to a more comfortable retirement.

 

[Phantom36]

If you need to contribute $1,000. and the government match it, shouldn't it be $1,000. from the govt not only $500. maximum. If they are only giving you 50% that's not matching, they all need new calculators.

 

[Mavis1942]

Uh

 

[Deejay11]

Thank you - it applies to me, and I was unaware of these two programs

 

[Dizzy]

Once again more savings for seniors who have super or other funds - nothing for those who have nothing.
No one left behind? Except those who are totally forgettable!

 

[IAN3005]

Superannuation... give it a wide birth..not worth the money.

 

[Soxylox]

I no longer work and have been living off my superannuation for the last four years because I haven't been able to get the aged pension, even though I'm 67. My late husband left me some money which has paid for things needing done around the house, paying rates, electricity etc and paying for food.
This is now getting very low and I'm starting to worry about keeping my home in the distant future.

 

[IAN3005]

I no longer work and have been living off my superannuation for the last four years because I haven't been able to get the aged pension, even though I'm 67. My late husband left me some money which has paid for things needing done around the house, paying rates, electricity etc and paying for food.
This is now getting very low and I'm starting to worry about keeping my home in the distant future.

Why don't you get the pension? Your husband must have left you a tidy sum.

 

[Deejay11]

I no longer work and have been living off my superannuation for the last four years because I haven't been able to get the aged pension, even though I'm 67. My late husband left me some money which has paid for things needing done around the house, paying rates, electricity etc and paying for food.
This is now getting very low and I'm starting to worry about keeping my home in the distant future.

You should be eligible for the pension if your money is running low. You can have a few hundred thousand cash and get the pension. But this cash will also be added to whatever you have in your Super. Maybe added together puts you over the limit

 

[IAN3005]

You should be eligible for the pension if your money is running low. You can have a few hundred thousand cash and get the pension. But this cash will also be added to whatever you have in your Super. Maybe added together puts you over the limit

I'm lucky that I closed down my super years ago.

 

[Manz666]

Ah yes, but the Government taxes that contribution at 28%. I made a contribution of $500, but found it was hardly worth it, by the time all the tax was taken out. What a joke!!

 

[IAN3005]

Ah yes, but the Government taxes that contribution at 28%. I made a contribution of $500, but found it was hardly worth it, by the time all the tax was taken out. What a joke!!

I got a bill from the ATO five years after I put money into super thinking I was doing the right thing..$90,000 the ATO wanted.

 

[richmich.4422@gmail]

All of these postings have created an extremely amount of confluting queries & answers.
I personally know of folks on the disability pension, work a small part time job. Are they entitled to the $500 contribution ? I can only imagine that they would be.

How can the ATO tax that contribution? Doesn't make one bit of sense to me at all.

How on earth can any one earning less than $45,500 /yr, trying to, maybe support a family, either paying rent or a mortgage, can afford to self contribute anything towards a super scheme, let alone the required $1000/yr to qualify ? Also, let alone all other costings they have to undertake to try & survive to live.

The opening post quotes that you could receive up to $1000. BUT, it doesn't quantify how.

All you read about is $500 max.

The mind just completely boggles.

I'm just glad that I'm not part of the passengers in that boat.

NOVEZAR.

 

[richmich.4422@gmail]

I got a bill from the ATO five years after I put money into super thinking I was doing the right thing..$90,000 the ATO wanted.

Hi IAN3005,
I am completely baffled how the ATO wanted $90K from you if you were paying into a super scheme.
Out of curiosity, the monies you were paying into your scheme, were they extra payments before or after tax?
Why did they want your dough?

Just can't fathom or work that one out at all. 1+1 certainly isn't adding up to 2.
Something seems extremely wrong to me in your particular instance & set of circumstances.

NOVEZAR.

 

[richmich.4422@gmail]

On the subject of superannuation, quite number of postings ago, I made some V'GOOD suggestions on what people should do about it.
Even though, as I did mention, completely unqualified to give any sort of advice to do so, it is a practice which my wife & self fully & totally indulge in.
As we are well over the age to contribute into super, it absolutely doesn't stop us from being completely active in how, & what is happening to how we have organised & what our accounts are invested in for maximum returns which are on offer.
The problem is, too many members of a scheme simply don't take an interest at all in what they could do to make an ALMIGHTY difference in their returns. All they do is go along with the flow & don't seem to worry about it.

I, for one, just can't understand why people don't take, or, make a stand with their super scheme company for BIGGER & BETTER choices for maximum returns which they can do.

I'm talking anything from a minimum of 20% up to +35% returns instead of the usual & dreary humbug 5%-10% max returns which what all super schemes talk about.

It's funny, when I did the mentioned postings, I was totally amused that absolutely no one made a comment at all.
That in itself told me that people just aren't interested in how they can absolutely better themselves,&, or , their family members.

You just have to be a little & tiny bit smart. Certainly not a huge task at all.

NOVEZAR.

 

[Oaklegs]

Just be aware that there are ATO scam posts arriving every day so be VERY careful what you click.

 

[IAN3005]

Hi IAN3005,
I am completely baffled how the ATO wanted $90K from you if you were paying into a super scheme.
Out of curiosity, the monies you were paying into your scheme, were they extra payments before or after tax?
Why did they want your dough?

Just can't fathom or work that one out at all. 1+1 certainly isn't adding up to 2.
Something seems extremely wrong to me in your particular instance & set of circumstances.

NOVEZAR.

I was on a six-digit salary with little expense.... so I was putting more than half my salary into super, before tax, which was at that time giving me a 16% return.
They said I was stashing away too much......On the pension and do the government for every cent I can.

 

[Eagle01]

Good morning to you and thank you for your time! Is much appreciated!
Could you advise me please?
I am 71 years of age, am not employed and on the meagre Centrelink aged Pension of $1140 a fortnight, yes, less the $600 a week!
I have previously in the past, had to draw down on my remaining Super to cover costs of Medical treatments.
One is most thankful never having had the desires to drink, smoke or gamble as with the rising costs of living including food and vegetables, fuel, vehicle registrations etc, how could one ever afford those vices!
May I request please, would I be eligible for this $1000? or $500? support payment through the ATO that you've been discussing please, thank you.
I look forward to your response and advice please and thanks again! Cheers and all best.
Kind regards, James.