Understanding LISTO
The low-income super tax offset (LISTO) payment is designed to ensure low-income earners generally don't pay more tax on their super contributions than on their take home pay.
Recent proposed changes to LISTO
From 1 July 2027, the government will increase the LISTO so that Australians on lower incomes are no longer left behind in retirement.
- The maximum LISTO payment will increase by $310 to from $500 to $810.
- The upper eligibility threshold will rise from $37,000 to $45,000.
These long-called-for changes, driven by ASFA’s sustained advocacy and backed by our member community, will benefit around 1.3 million Australians and could mean an extra $15,000 at retirement for some workers.
LISTO
Who is eligible for the LISTO?
You’re eligible for the LISTO if:
- you or your employer make concessional (before-tax) contributions to your super during the financial year, and
- your adjusted taxable income is $37,000 or less, and
- you haven’t held a temporary resident visa (New Zealand citizens in Australia are eligible), and
- at least 10% of your income comes from employment or business, as shown on your tax return, or if no tax return is lodged, from your employment.
LISTO
How much will you receive from the government?
The LISTO is 15% of the before tax (‘concessional’) super contributions you or your employer pays into your super fund. The maximum LISTO payment you can receive is $500 each financial year.
LISTO
What do you need to do?
You don’t need to apply for the LISTO. The Australian Tax Office will work out if you are eligible and pay any LISTO amount to your super fund automatically.
Reaching your preservation age and LISTO
If you have reached your preservation age to access your super and you are retired, you can apply to the ATO to have your LISTO paid directly to you – see information on the ATO website.
