Proposed low income rebate for those earning up to $37,000
May 12th, 2012
The government is planning to pay a new super contribution of up to $500 dollars annually into the super accounts of eligible low-income earners from the 2012-13 income year.
The payment will be 15% of the eligible concessional contributions (including employer contributions) made by or for individuals with adjusted taxable incomes of up to $37,000. Individuals will also need to meet a test where at least 10% of their income must be from employment or business sources and they are a resident of Australia or New Zealand.
The introduction of the low income super rebate will effectively remove the 15 % super contributions tax for those earning up to $37,000.