From 1 July 2017, the Government introduced the Low Income Superannuation Tax Offset (LISTO) which replaced the Low Income Superannuation Contribution (LISC) policy. LISTO offsets the tax paid on concessional contributions made by low income earners.
Eligible Members with an adjusted taxable income of up to $37,000 will receive a LISTO contribution equal to 15% of their total concessional contributions. The maximum payment Trustees can receive for a financial year is $500.
To be eligible for LISTO, Members must meet the following criteria:
The Tax Office will determine if a Member is eligible for the Low Income Superannuation Tax Offset. Eligible Members will automatically receive the refund in the SMSF bank account.
If Members have reached their preservation age and retired, they can apply to have the LISTO paid to them directly by doing either of the following:
A person who is a low-income earner is also eligible for Government co-contribution. To know if you are eligible for a Government co-contribution, please see here.