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Low income super income tax offset (LISTO)

Section: 2.8

The low income super tax offset (LISTO) is a government superannuation of up to $500 to help low-income earners.

If a member earns $37,000 or less in a year, the member may be eligible to receive a LISTO payment. This is usually paid directly into their super fund.

The LISTO is 15% of the concessional (before tax) super contributions a member or their employer pays into the super fund. The maximum payment a member can receive in a financial year is $500, and the minimum is $10.

LISTO replaces the low income super contribution (LISC) that was repealed from 1 July 2017. The last year of contribution for LISC was 2016-17 with final determinations relating to years 2012-13 to 2016-17 to be processed on or before 30 June 2019. LISTO retains all of the same features as LISC and will provide continued support for low-income earners and ensure that generally they do no pay more tax on their super contributions than on their take-home pay.

Eligibility criteria

A member is eligible for the LISTO if they satisfy all of the following requirements:

  • a member or their employer pay concessional contributions for the year to a complying super fund - this includes super guarantee amounts
  • a member earns $37,000 or less a year - to work out their eligibility, the actual or estimated 'adjusted taxable income' is used
  • a member has not held a temporary resident visa at any time during the income year (note that New Zealand citizens in Australia are eligible for the payment)
  • a tax return is lodged and 10% or more of their total income comes from business and/or employment, or
  • a tax return is NOT lodged and 10% or more of their total incomes from their employment
Note: A low-income earner may receive super co-contributions when they make a personal (after tax) super payments

LISTO is calculated after a member lodges their tax return and is paid to their super fund. If a tax return is not lodged, the ATO will work out the entitlement based on information it receives from the super fund and your employer.

This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.

Last modified: Tuesday, November 3, 2020