• Low income super tax offset contribution

    The government introduced a low income superannuation tax offset (LISTO), which will replace the low income superannuation contribution (LISC) policy that was been repealed effective 1 July 2017.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. Eligible individuals will be paid via a contribution benefit into their fund account. The effect of the LISTO payment to the individual’s account is to offset the tax their superannuation fund pays on their contributions.

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

    See also:

    Summary impacts for APRA-regulated funds

    To minimise the compliance costs for APRA-regulated funds and any system build required to conform with the Standard Business Reporting (SBR) data standards as a result of this legislative change, we are proposing to:

    • Maintain and re-use the existing taxonomy element name of 'Superannuation Contribution Low Income Amount'.
    • Revise the associated business definition for this field to read 'This is the value, during the relevant period for the low income superannuation benefit. For the contribution years up to and including 30 June 2017, this is the value for the low income superannuation contribution amount during the relevant period. For contribution years from 1 July 2017 onwards, this is the value for the low income superannuation tax offset'.

    Under the Corporations Regulations 2001, APRA-regulated funds still have a choice in their reporting to member statements of reflecting the super co-contributions, LISC and LISTO benefits separately, or reporting these under one item labelled ‘Government co-contribution’.

    Last modified: 25 Sep 2017QC 51310