LISTO — the Low Income Super Tax Offset

The problem LISTO solves

Super contributions are taxed at 15% on the way in. For most workers this is great — they pay 30%+ on other income. But for someone earning under $37,000, their marginal income tax rate is only 16%. So 15% contributions tax is nearly equal to their income tax — the super system gives them no advantage at all.

LISTO fixes this by refunding up to $500 of the contributions tax.

How much you get

• 15% of your concessional contributions (employer SG + any sacrifice + any personal deductible)
• Capped at $500 per year
• Paid as a direct deposit into your super fund

Example: Nadia earns $32,000 and SG into her super is 12% = $3,840. Contributions tax is 15% = $576. LISTO refunds the lesser of 15% ($576) or $500 = $500. Her super receives $500 on top of the SG.

Eligibility

• Adjusted taxable income of $37,000 or less
• At least 10% of your total income from employment or business activities
• Not a temporary resident (Australian citizens, NZ citizens and permanent residents are eligible)
• Your super fund must have your TFN — otherwise they can’t process the payment

You don’t apply — but you do need to lodge a tax return

LISTO is calculated automatically by the ATO based on your tax return and information super funds report. There’s no form. But:

• If you don’t lodge a tax return, the ATO determines eligibility from super fund data alone and may still pay it
• If you never gave the fund your TFN, they can’t accept the payment — give it to them now

LISTO vs co-contribution

You can receive both in the same year if you qualify. A low-income worker who also puts $1,000 of after-tax money into super could receive $500 LISTO + $500 co-contribution = $1,000 in government top-ups.

Common reasons people miss out

• Fund doesn’t have your TFN (most common — easily fixed via myGov)
• Income just over $37,000 (no taper — hard cut-off)
• Working as a contractor under an ABN with less than 10% of income classified as employment