Govern­ment Incen­tives

Make the most of the government incentives available to help grow your super!
As a Cruelty Free Super member, we don’t want you to miss out.
There are two government incentives that are particularly good for young people.

Incentive 1,
Super Co-Contribution

OK, boring name, but this is a great incentive to increase your super balance!
Here’s the A, B, C of the deal:
  • aDo you earn less than $54,837 p.a.? It’s even better if you earn less than $39,837. Well, that’s most young people working part time! Is this you?
  • bMake a personal contribution to your super account i.e. transfer some money from your bank account to your super account. Cruelty Free Super has a BPay feature that makes this easy.
  • cThen the government will make a co-contribution into your super account! These co-contributions are subject to the government’s eligibility requirements. Please see those requirements at the ATO website. Yep, that’s money from the government paid to your super account! If you earn less than $39,837 p.a., they’ll give you 50 cents in the dollar up to a maximum of $500. So if you transfer $600 into your super account, the government will put $300 into your super.
Even better, you can do this every financial year if you meet the ATO’s criteria!
Another good thing – because this is a personal contribution, you can withdraw this later to buy your first home under the government’s new “First Home Super Saver Scheme” (FHSSS).

OK, what are the details?

  • You need to be earning 10% or more of your total income from employment related activities e.g. income from working at a job.
  • You need to make a personal contribution into your super account. You need to have added your TFN (Tax File Number) to your Cruelty Free Super account to do this.
  • You need to lodge a tax return following the end of the financial year, so that the government knows how much money you’ve earned.
  • If your income is below $39,837 p.a., the government’s co-contribution will be 50c for every $1 you contribute.
  • If your income is between $39,837 and $54,837 p.a., then the co-contribution amount will decrease progressively as your income increases. You will not receive a co-contribution if your income is equal to or greater than $54,837 p.a.
  • The maximum amount that the government will co-contribute is $500 p.a. So, to maximise the benefit of this incentive, if you earn less than $39,837 p.a. you would need to contribute $1,000.
For more information about the super co-contribution check out the ATO website.
Storm tried it
Storm (Commerce, USyd) wanted to test this incentive out. She has a part time job, so she met the criteria of having an income under $54,837. Even better her income is under $39,837, so she’s eligible for the best rate of co-contribution – 50 cents in the dollar.
Storm used the Cruelty Free Super BPay details to transfer $100 from her bank account to her Cruelty Free Super account. In July, she will do her normal tax return (which will confirm to the ATO that she earnt less than $39,837). The ATO will then transfer $50 into her Cruelty Free Super account. Too easy. Next year she plans to do more.

Want to get started?

You can make a personal contribution by logging into Cruelty Free Super and using the Personal Contributions page.

Incentive 2,
Low Income Super Tax Offset (LISTO)

The great thing about this incentive is you don’t have to do anything extra to get it.
If you’re eligible, the government just pays the LISTO automatically. All you need to do is submit your normal tax return and make sure your Cruelty Free Super account has your TFN (Tax File Number).

Here's the deal;

If your total income from working at a job is below the tax-free threshold, the government won’t make you pay any tax on that income. However, you will have paid 15% tax on the super contributions your boss made to your super account.
Because you’re classified as a low-income earner, the government refunds this tax to your super account.

OK, what are the details?

If you have an adjustable taxable income below $37,000 p.a. you could be eligible to receive LISTO.
You need to lodge a tax return following the end of the financial year, so that the government knows how much money you’ve earned.
  • The maximum amount you can receive per financial year is $500.
  • Your super fund will need your TFN to receive your LISTO.
  • So long as you meet the above criteria, the LISTO will be automatically paid into your super fund account.
For more information about the LISTO check out the ATO website.

We're here to help

I’m Taylor from the support team at Cruelty Free Super. Our team can answer any questions you have. Chat with us online or send us an email at .