Are you a low-income earner? Did you know low-income super tax offset can boost your retirement savings? We’re delving into the low-income super tax offset or LISTO, a vital mechanism empowering low-income earners to fortify their retirement savings. Let’s start with the basics.
The low-income super tax offset or LISTO is a government initiative tailored to support those earning up to $37,000 annually. This means you could be entitled to a list of payments of up to $500 effortlessly boosting your retirement savings. The best part, no action is needed from your end. Just ensure your super fund has your tax file number or TFN.
Understanding your eligibility is key to qualify for LISTO:
Let’s bring LISTO to life with Julie, a childcare assistant earning $32,000 a year. Her employer contributes $3360 to her super fund with smart tax deductions. Julie’s adjusted taxable income becomes $31,000 making her eligible for the full $500 list of boost. It’s an example that resonates with many low-income earners. LISTO doesn’t just benefit the living, it extends its support to deceased estates.
If a person passes away, their estate may be liable to the LISTO. Eligibility for the LISTO is worked out using the eligibility requirements mentioned above, but the income tests are applied if an individual has continued to earn at the same rate for the entire year.
We explore the eligibility criteria in such cases, offering a compassionate angle to the financial assistance. LISTO provides even in challenging times, empower yourself by estimating your potential list of payments. Use ATO’s online calculator for a quick assessment or manually calculate by multiplying your concessional super contributions by 0.15. It’s a valuable exercise to gauge the financial boost heading your way.
You need to be sure that your super fund has your tax file number. Your tax file number, your superannuation fund can’t accept a LISTO payment. If you file a tax return, your LISTO will be directly paid into your super fund account depending on your tax return and information from your super fund. If you don’t file a tax return, the ATO will check your eligibility using information from your super fund and other sources, and pay your LISTO to the fund. LISTO is more than a financial perk. It’s a tool empowering low-income earners on their journey to financial freedom. Take charge of your financial destiny. Stay informed and embrace the opportunities LISTO provides.
The blog shares information on enhancing low-income retirement savings with super tax offset. If you don’t know about LISTO, you can also get in touch with Reliable Melbourne Accountants as we can help you deal with your financial future matters.
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