Earn Under $37,000? The Government May Owe Your Super Up to $500 (and $810 from 2027)
The low income super tax offset pays up to $500 into your super after tax time, and it rises to $810 from July 2027. Here's who gets it and how not to miss out.
If you work part time, casually, or you are just starting out, there is a government payment you might be getting without ever noticing. It is called the low income super tax offset, or LISTO, and it can put up to $500 a year into your super.
It is about to get bigger, too. A law passed in March 2026 lifts the maximum payment to $810 and lets more people qualify from 1 July 2027.
With the 31 October lodgment deadline days away, now is a good time to understand how it works, because the most common way to miss out is a simple admin slip.
What LISTO actually does
When your employer pays super for you, those contributions are taxed at 15% as they go into your fund. That is the contributions tax, and it applies whatever you earn.
For someone on a high income, 15% is a bargain compared with their income tax rate. But for a lower earner it can be a bad deal. If you earn under the $18,200 tax-free threshold, you pay no income tax on your wages, yet your super is still taxed at 15%. In other words, your super could be taxed at a higher rate than your pay.
LISTO fixes that. The government works out 15% of your concessional contributions (before-tax super, such as your employer's super guarantee payments and any salary sacrifice) and pays that amount back into your super account, up to a cap of $500.
Who qualifies for 2025-26
For the 2025-26 financial year, the one you are lodging a return for now, you can get LISTO if all of these apply:
- Your adjusted taxable income is $37,000 or less. That is your taxable income with a few things added back, such as reportable fringe benefits and salary sacrificed super.
- You, or your employer, made concessional contributions to your super during the year.
- At least 10% of your total income came from a job or a business. This stops people living mainly on investment income from qualifying.
- You did not hold a temporary resident visa at any time during the year. New Zealand citizens living in Australia can still qualify.
Worked example: what it is worth
Jess works part time in retail and earns $20,000 in 2025-26. With the super guarantee at 12%, her employer pays $2,400 into her super.
Contributions tax takes 15% of that, which is $360. LISTO is 15% of $2,400, which is also $360, so the government pays $360 back into her super. The effect is that her super contributions end up taxed at zero, the same as her wages.
Now take Tom, who earns $35,000. His employer pays $4,200 in super, and 15% of that is $630. But LISTO is capped at $500, so he gets $500 back. Still a solid boost, especially when it is invested for decades.
And Priya, who earns $40,000? She is over the $37,000 limit, so she gets nothing for 2025-26. That is the group the 2027 change is aimed at.
What changes from 1 July 2027
The $37,000 limit and the $500 cap have not moved since LISTO began in 2017. Meanwhile wages have risen and the super guarantee has climbed to 12%, so more of a low earner's contributions tax has been going unrefunded.
The new law, passed by Parliament in March 2026, makes two changes from 1 July 2027:
- The income limit rises from $37,000 to $45,000. The ATO notes this lines up with the top of the second income tax bracket.
- The maximum payment rises from $500 to $810.
Where the $810 comes from
It is not a random number. Someone on $45,000 gets 12% super guarantee, which is $5,400. Fifteen per cent of $5,400 is exactly $810. So at the new limit, a worker on the standard super guarantee gets all of their contributions tax refunded.
Worked example: Priya in 2027-28
Under the new rules, Priya on $40,000 would qualify. Her employer pays 12% super, which is $4,800. Fifteen per cent of that is $720, which is under the $810 cap, so she would get $720 paid into her super for the 2027-28 year.
Because LISTO is worked out after the year ends, she would see that payment after lodging her 2027-28 return, so from the second half of 2028. Nothing changes for the return you are lodging this month.
How to make sure you get it
You do not apply for LISTO. The ATO works it out automatically using your tax return and the contribution details your super fund reports, then pays it straight into your fund. But automatic only works if the ATO has what it needs.
- Make sure your super fund has your tax file number (TFN). Without it, your fund cannot accept a LISTO payment.
- Lodge your tax return if you need to. If you lodge yourself, the 2025-26 deadline is 31 October 2026, which falls on a Saturday this year, so you effectively have until Monday 2 November.
- Not required to lodge? You can still qualify, as long as at least 10% of your income came from your job.
- Keep your super contact details up to date and check your fund's transaction history for a government contribution after tax time.
The trap: LISTO is not LITO
The names are almost identical, which trips up a lot of people. The low income tax offset (LITO) is worth up to $700 and reduces the income tax on your return, so it can show up in your refund. The low income super tax offset (LISTO) never touches your refund. It goes into your super account, so if you are looking for it in your bank account, you will not find it. You can get both in the same year.
The bottom line
If you earn $37,000 or less, LISTO is up to $500 a year of free money for your retirement, and you only have to do two things to get it: give your fund your TFN and lodge on time. From July 2027 it covers people earning up to $45,000 and pays up to $810.
This is general information, not financial or tax advice. Check your own situation with the ATO, your super fund or a registered tax agent.
FAQ
How much is the low income super tax offset?
LISTO is 15% of your concessional (before-tax) super contributions, up to $500 a year, for people with an adjusted taxable income of $37,000 or less. From 1 July 2027 the limit rises to $45,000 and the maximum payment rises to $810.
Do I need to apply for LISTO?
No. The ATO calculates it automatically from your tax return and the contribution details your super fund reports, then pays it into your super. Your fund must have your tax file number to accept the payment.
Will LISTO show up in my tax refund?
No. LISTO is paid into your super account, not your bank account. It is different from the low income tax offset (LITO), which reduces the income tax on your return. This is general information, not tax advice.
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