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Low income super income tax offset (LISTO)

Section: 2.8

2.8 Low-income super income tax offset (LISTO)

The Low Income Super Tax Offset (LISTO) is a government superannuation payment of up to $500 to help low-income earners.

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LISTO replaces the Low Income Super Contribution (LISC) that was repealed on 1 July 2017.

Eligibility criteria

Eligibility:
A member is eligible for the LISTO if they satisfy all of the following requirements:
 
  • A member or their employer make concessional contributions to a complying super fund - this includes super guarantee amounts and member deductible amounts up to the concessional contributions cap
  • The member earns $37,000 or less a year based on actual or estimated adjusted taxable income is used
  • 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
  • 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)

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 co-contributions if they make a non-concessional superannuation contributions.

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: Friday, July 2, 2021