Low Income Superannuation Tax Offset (LISTO): How it works

Low-income earners don’t always receive the same tax advantages from super contributions as higher earners. The Low Income Superannuation Tax Offset (LISTO) helps by returning some or all of the tax on their contributions to their super account.

If you’re eligible, you can receive up to $500 a year, paid directly into your super. You don’t need to apply, because the Australian Taxation Office (ATO) checks your eligibility and makes the payment for you.

Legislation has now been passed to expand LISTO from 1 July 2027, increasing both the income threshold and the maximum payment.

LISTO income threshold and maximum payment

Source: ATO

What is LISTO?

LISTO is a government payment into your super account that refunds some or all of the 15% tax your super fund deducts from your concessional (before-tax) contributions and pays to the ATO.

Your concessional contributions include your employer’s compulsory Superannuation Guarantee (SG) contributions and any salary-sacrifice contributions, plus any personal contributions for which you claim a tax deduction.

For most workers, the tax rate on money going into their super account is significantly lower than the rate they would pay on the same income outside super. That isn’t always true for low-income earners. LISTO is designed to give them some tax savings and prevent them paying more tax on their super contributions than if they received the same amount as take-home pay.

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Who is eligible for LISTO payments?

Eligibility depends on your adjusted taxable income for the financial year, which can be higher than your taxable income. Salary sacrifice is added back, so it won’t take you under the LISTO threshold.

To be eligible for LISTO, you need to meet all the following criteria:

• You have an adjusted taxable income of $37,000 or less in 2026–27, or $45,000 or less from 2027–28
• You or your employer have paid concessional contributions (including SG contributions) for the year into a complying super fund
• You have not held a temporary resident visa at any time during the year, unless you are a New Zealand citizen
• At least 10% of your total income comes from employment or business income, as explained below.

How the 10% test works depends on whether you lodge a tax return:

• If you lodge a tax return, at least 10% of your total income must come from employment, business income or a combination of both.
• If you don’t lodge a tax return, at least 10% of your total income must come from employment. The ATO still checks whether you are eligible, using contributions information from your super fund and other income data it collects.

How much LISTO can you receive?

LISTO equals 15% of your concessional contributions for the year, up to the annual maximum of $500, or $810 from 2027–28. The minimum payment is $10. If you are eligible for less than $10, the ATO rounds the payment up to $10.

LISTO payment by salary, 2026–27 and from 2027–28

Assumes the only concessional contributions are employer Superannuation Guarantee contributions at 12% of salary, and that adjusted taxable income equals salary. Ignores the $10 minimum payment. Source: SuperGuide calculations

Use the ATO’s LISTO calculator to estimate your eligibility and payment based on your income and super contributions.

How do you receive LISTO?

The ATO automatically calculates your LISTO entitlement and pays it into your super account. You don’t need to apply.

The ATO checks the relevant information when you lodge your income tax return after 30 June each year. It also receives information from your super fund about your super contributions.

If you don’t lodge a tax return, the ATO can still assess your eligibility using information from your super fund and other income data it collects.

Normally, the ATO makes the first round of LISTO payments several months after you lodge your tax return.

What changes from 1 July 2027?

From the 2027–28 financial year onwards, LISTO will be available if your adjusted taxable income is $45,000 or less, and the maximum payment will increase from $500 to $810.

The higher maximum will fully offset the 15% contribution tax on Superannuation Guarantee contributions for those who are eligible to receive it.

The new law also links LISTO’s income threshold and maximum payment to the tax brackets and the Superannuation Guarantee rate, so they will move with those settings. Treasury estimates more than 750,000 additional people will be eligible, including more than 450,000 women, and the average payment will rise from $280 to $375 a year.

The following two examples assume salary equals adjusted taxable income and all other eligibility conditions are met.

Example: Xian receives a larger payment from July 2027

Xian earns $36,000 in 2026–27 and receives $4,320 in super from his employer (the minimum 12% Superannuation Guarantee).

Xian is eligible for LISTO of $500 (the maximum). LISTO is not sufficient to refund the full 15% tax on his employer’s contributions, which is $648 (15% x $4,320).

If Xian earns the same amount in 2027–28 and receives the same employer contributions, he will receive $648 LISTO thanks to the increase in the maximum offset available. This will provide him a full refund of contribution tax on his employer’s contributions.

Xian’s LISTO compared with his contributions tax

Xian earns $36,000 and receives $4,320 in employer contributions (12%), taxed at 15% in his fund. Source: SuperGuide calculations

Why is LISTO needed?

Concessional contributions are generally taxed at 15% when they go into your super account. In 2026–27, income tax rates are zero for income up to $18,200 and 15% for the dollars you earn between $18,201 and $45,000, not including the Medicare levy. That rate falls to 14% from 1 July 2027.

Without LISTO, very low-income earners would pay more tax to contribute to super than they do on their last dollar of annual income, and those paying the 15% rate would get no tax saving on their contributions. From 2027–28, comparing marginal rates before the Medicare levy and tax offsets, everyone in the 14% bracket would pay more tax on contributions than on their pay.

Tax on pay vs tax on concessional super contributions, 2026–27 and 2027–28

Marginal tax rates for Australian residents, excluding the Medicare levy and tax offsets. Each rate applies only to income within that bracket. Source: ATO

According to the latest ATO statistics, LISTO entitlements determined in 2025–26 went to just over 2.2 million people and totalled almost $600 million.

The bottom line

LISTO helps reduce the contributions tax paid by eligible low-income earners. If your adjusted taxable income is $37,000 or less, or $45,000 or less from 2027–28, and you meet the other conditions, the ATO pays it into your super automatically.

Make sure your super fund has your TFN so it can accept the payment.