Low Income Superannuation Tax Offset (“LISTO”)

budget-2016_17  The 2016 Budget announcement contained a proposal for a non-refundable tax offset to superannuation funds, to reduce the tax paid on concessional contributions which are made for or by low income earners.

“Low income” refers to an adjusted taxable income of $37,000.

The offset is available from 1 July 2017 for 2017-18 and later years.

The offset will operate in similar terms to the earlier “LISC” scheme which ceased on 30 June 2017.

LISTO is a rebate to the super fund account of the low income member at the rate of 15% of eligible contributions, thus matching the tax on contributions, and up to a ceiling of $500. A minimum of $10 (rounded up to $10 if necessary) is payable.

The rebate is paid to the super fund of the low-income taxpayer claimant.

Example:

Source: ATO

Legislation passed

Legislation was passed (in Nov 2016) by parliament to provide a rebate of up to $500 (credited to their super fund) for low income earners with an adjusted taxable income of $37,000 or less.

The amount of the rebate is calculated as 15% of eligible super contributions, which are essentially contributions made to an approved (i.e. “eligible”) super fund.

The necessary conditions are:
• the individual was not a holder of a temporary visa at any time in that income year other than certain limited situations;
• at least one concessional contribution has been made by or for that individual in the corresponding financial year; and
• adjusted taxable income for that income year that does not exceed $37,000 and at least 10 per cent of the individual’s income for the income year is from business or employment (or in limited circumstances the Commissioner estimates that to be the case).

See: Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016

See also

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This page was last modified on 2018-11-27