Getting money into super
Low income super income tax offset (LISTO)
Section: 2.8
2.8 Low-income super income tax offset (LISTO)
What is LISTO?
If you are on a low income (earning under $37,000), you pay no personal income tax on the first $18,200 you earn and then 19% tax on any income over $18,201 up to $45,000 (in 2023/24). However all compulsory Superannuation Guarantee (SG) contributions paid by your employer are taxed at 15%. LISTO allows you to recpooup this 15% superannuation tax.
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.
Eligibility
You are eligible for the LISTO if you satisfy ALL of the following requirements:
- you or your employer pay concessional (before tax) contributions for the year to a complying super fund - this includes super guarantee amounts
- you earn $37,000 or less a year - to work out your eligibility, we use your actual or estimated 'adjusted taxable income' (see Income tests)
- you have 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)
- you lodge a tax return and 10% or more of your total income comes from business and/or employment, or you don't lodge a tax return and 10% or more of your total income comes from your employment.
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 the information it receives from the super fund and your employer.
| Note: A low-income earner may also be eligible to receive super governemnet co-contributions if they make non-concessional superannuation contributions. |
1 July 2023.
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: Thursday, June 29, 2023