Individuals who earn less than $37,000 (adjusted taxable income which includes taxable income, net investment losses, reportable fringe benefits and voluntary employer super contributions or personal deductible contributions) will have the first $500 of contributions tax refunded back into their super account via the Low Income Superannuation Tax Offset (LISTO).
This is designed to make superannuation guarantee contributions (and possibly some salary sacrifice or personal deductible contributions) for low income earners tax free in their super fund.
The total amount of concessional contribution able to be paid is limited to an indexed cap of $27,500 per annum (2022/23 financial year).
We will explain further the eligibility to make a super contribution and ability to claim a tax deduction later in the module.