Individuals with adjusted taxable income of $37,000 or less may qualify for the offset.
The offset was introduced by the government to compensate some lower income earners for the contributions tax paid, which may have been more than the personal income tax payable if they’d received the amount as salary or wages.
A person may qualify for the offset if:
The offset is calculated as 15% of the person’s concessional contributions for the year, up to a maximum of $500. The offset is paid directly by the Australian Tax Office (ATO) to your Brighter Super account.
The ATO works out adjusted taxable income by adding a number of income sources to taxable income, including:
The government’s co-contribution scheme may also help low income earners who make personal super contributions.
You can read more information about the co-contribution scheme here.