The Low Income Super Tax Offset (LISTO) is a government payment of up to $500 per year into the super accounts of eligible low-income earners. It is designed to ensure that people on low incomes don’t pay more tax on their super contributions than they do on their regular income.
Why LISTO Exists
Concessional contributions to super — including employer SG contributions — are taxed at 15% inside the fund. For most working Australians on moderate or high incomes, this is lower than their marginal income tax rate, making super an effective tax savings vehicle.
However, for Australians earning below the tax-free threshold (effectively $18,200) or on low incomes where their marginal rate is only 0–19%, the 15% contributions tax rate may actually be higher than the tax they’d pay if the money came to them as ordinary income. This was seen as inequitable — low-income earners were receiving less benefit from the super tax concession than higher earners.
LISTO addresses this by refunding up to $500 of contributions tax back into their super account.
Who Is Eligible?
To be eligible for LISTO in FY2025–26:
- Your adjusted taxable income must be $37,000 or less
- You must have a complying super fund with a balance greater than zero
- You must have had concessional contributions made to your fund during the financial year (employer SG contributions count)
- You must have lodged a tax return (or had the ATO determine your income another way)
- You must be at least 18 years old, or if under 18, must have been employed during the year
Partial eligibility: The income threshold tapers — higher earners within the $37,000 range receive proportionally lower payments.
How Much Is the LISTO?
The LISTO equals 15% of your concessional contributions, capped at $500.
| Concessional Contributions | LISTO Amount |
|---|---|
| $1,000 | $150 |
| $2,000 | $300 |
| $3,333+ | $500 (maximum) |
Even if your contributions are small (e.g. if you worked part of the year), you still receive 15% of whatever concessional contributions were made — as long as income is $37,000 or less.
Minimum LISTO payment: $10.
How Is LISTO Paid?
You don’t apply for LISTO — the ATO calculates it automatically after you (or your employer) lodge the relevant information.
Process:
- Your employer reports concessional contributions to the ATO via Single Touch Payroll (STP)
- You lodge your tax return
- The ATO calculates your LISTO entitlement
- The ATO sends the LISTO payment directly to your nominated super fund
- Your fund credits it to your account — it appears as a government contribution
Timing: LISTO is typically paid in the financial year following the year the contributions were made. For example, contributions in FY2024–25 would result in a LISTO payment credited sometime in FY2025–26.
What it looks like in your account: The LISTO credit appears as a government contribution in your super statement. It is a non-concessional contribution and does not count toward the concessional or non-concessional caps.
LISTO and Super Contribution Types
LISTO is only triggered by concessional contributions — employer SG contributions, salary sacrifice, and personal contributions where a tax deduction is claimed. It does not apply to:
- Personal after-tax (non-concessional) contributions that you don’t claim a deduction for
- Spouse contributions
- Government co-contributions (these are separate)
If you are employed and your employer is paying SG contributions, you will likely receive the LISTO automatically if your income is under $37,000 — you don’t need to do anything extra.
LISTO vs Government Co-Contribution — What’s the Difference?
These are two separate government programs:
| LISTO | Government Co-Contribution | |
|---|---|---|
| Who triggers it | Concessional (employer/salary sacrifice) contributions | Personal after-tax contributions you make yourself |
| Income limit | $37,000 | $43,445 (phases out to $58,445 for FY2025–26) |
| Maximum payment | $500 | $500 |
| Tax deduction claimed? | Yes (concessional) | No (personal after-tax) |
| Automatic? | Yes | Yes (if you lodge a return) |
Low-income earners may be eligible for both in the same year — LISTO from employer contributions and the co-contribution if they also make personal after-tax contributions.
Frequently Asked Questions
I earn $35,000 — will I automatically get LISTO? Yes, if your employer is making SG contributions, LISTO should be calculated and credited automatically. Make sure you lodge your tax return each year.
Can I claim LISTO on a salary sacrifice contribution? Yes — salary sacrifice contributions are concessional contributions and count toward LISTO eligibility.
Does LISTO count toward my contribution caps? No — LISTO is a government contribution and does not count toward either the concessional cap ($30,000) or the non-concessional cap ($120,000).
I’m a low-income earner with an SMSF — do I get LISTO? Yes — LISTO applies to complying super funds including SMSFs.
For official LISTO eligibility rules and current rates, see the ATO’s LISTO page. Related reading: Super Tax — Complete Guide, Concessional Contributions.