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  • New low income super tax offset

    The government introduced a low income superannuation tax offset (LISTO), which replaced the low income superannuation contribution (LISC) policy that was repealed from 1 July 2017.

    LISTO will provide continued support for low-income earners and ensure that, generally, they do not pay more tax on their super contributions than on their take-home pay.

    Effective 1 July 2017, eligible individuals with an adjusted taxable income up to $37,000 will receive a LISTO payment to their super fund. The LISTO payment will be equal to 15% of their total concessional (pre-tax) super contributions for an income year, capped at $500.

    The LISTO is calculated on 15% of the concessional (before tax) super contributions you or your employer pays into your super fund. The maximum payment you can receive for a financial year is $500, and the minimum is $10. If you're eligible for less than $10, we will round this up to $10.

    If you do not lodge a tax return, we will work out your eligibility using contributions information provided by your super fund, in addition to other income information we collect.

    If you lodge a tax return, your LISTO will be paid directly to your super fund account when we have processed your income tax return and received information from your super fund about your super contributions.

    As the LISTO is paid directly into your super fund, you just need to make sure your super fund has your TFN. Without your TFN, your super fund cannot accept a LISTO payment.

    If you've reached your ‘preservation age’ and are retired, you can apply to have your LISTO paid directly to you.

    To request a direct payment, you can:

    • use myGov to lodge a request online, or
    • complete an Application for direct payment of a government super contribution (NAT 10759).

    Questionnaire to determine eligibility for low income superannuation tax offset (LISTO)

    Question

    Answer

    1. Did you or your employer make concessional (before tax) contributions-including super guarantee amounts to your super fund?

    • Yes – Go to Q2
    • No – You are not eligible for a LISTO

     

    2. Did you earn $37,000 or less a year? – To work out your eligibility, we use your actual or estimated adjusted taxable income.

    • Yes – Go to Q3
    • No – You are not eligible for a LISTO

     

    3. Did you hold a temporary resident visa at any time during the income year? (Exception – New Zealand citizens in Australia)

    • Yes – You are not eligible for a LISTO
    • No – Go to Q4

     

    4. Did 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.

    • Yes – You are eligible for a LISTO
    • No – You are not eligible for a LISTO

     

    See also:

    Last modified: 27 Nov 2017QC 51329