Low Income Super Tax Offset

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:

• You or your employer have paid concessional (before tax) contributions for the year into a complying SMSF
• You have an adjusted taxable income of $37,000 or less for the financial year
• You have not held a temporary resident visa at any time during the income year (New Zealand citizens in Australia are eligible for the payment)
• You have lodged a tax return and at least 10% of your total income came from employment, business income or a combination of both

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:

• Lodge a request through myGov, or
• Complete an Application for payment of ATO-held superannuation money form (NAT 74880)

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.