This week we have seen the first Low Income Super Tax Offset (LISTO) notices coming in.  The LISTO is a Government incentive to refund the tax paid on the concessional contributions (CC) made to super either by an individual or their employer. The LISTO details are as follows:

1. Concessional contributions (CC): made for individuals where their superannuation fund receives CC i.e. taxable contributions on their behalf.
2. Adjusted Taxable Income (ATI): is less than $37,000 - read more about how ATI is calculated here.

The maximum amount of the LISTO is 100% of the tax paid up to $500.  

Here is our example of Simon, who earns $30,000 per annum.  His employer superannuation guarantee (SG) contributions of 9.5% are therefore $2,850 p.a.

• - Simon's superannuation fund receives the contributions of $2,850 and deducts 15% contributions tax i.e. $427.50 in the fund.
• - As Simon has no other sources of income, his ATI is $30,000, which is less than the limit of $37,000.
• - When Simon lodges his personal income tax return, the ATO assesses his LISTO and refunds the amount of $427.50 to his member's account in his superannuation fund.

The LISTO is entirely different from the Government Super Co-contribution (SCC), read our update on the SCC here.  As always, seek professional advice, taking your personal situation into account before acting. If you need assistance email us on wealth@primarius.net.au