LISTO pays 15% of concessional contributions into the member's super fund, up to $500, for members with income at or below $37,000. The co-contribution matches non-concessional contributions 50 cents in the dollar, up to $500, for members with income below $47,488 who are under 71. Both are automatic — no separate application needed. An eligible member making both types can receive up to $1,000 of government-funded super in one year.
Two government super entitlements specifically support Australians on modest incomes: the Low Income Super Tax Offset (LISTO) and the government co-contribution. Each has a maximum value of $500. They are modest in absolute terms but meaningful for the cohorts they target — and, because both are automatically paid without separate application, they are also frequently overlooked by eligible members who are not aware they are receiving them, or by advisers who have not checked eligibility for a lower-income spouse or phased retiree.
How does LISTO refund contributions tax for low-income earners?
The Low Income Super Tax Offset exists to correct a structural anomaly in the superannuation tax system. Concessional contributions — employer SG, salary sacrifice, and personal deductible contributions — are taxed at 15% inside the fund. For Australians on higher incomes, this is a significant discount against their marginal rate. But for Australians on very low incomes, the 15% contributions tax can exceed their personal marginal rate, meaning the super system is actually taxing their retirement savings at a higher rate than their ordinary income. LISTO corrects this by refunding the differential back into the member's super account.
The mechanics are straightforward: the government pays 15% of concessional contributions made during the year into the member's super fund, up to a maximum of $500. This means a member with concessional contributions of $3,333 or more receives the full $500. A member with $2,000 of concessional contributions receives $300.
Eligibility requires that the member's income — assessable income plus reportable fringe benefits plus reportable employer super contributions — is $37,000 or less. The payment is automatic, provided the member has their tax file number registered with the super fund and their tax return has been lodged. The credit appears in the super account, not as a cash payment. For many low-income earners, the easiest way to confirm it is being received is to check the super statement after the annual tax return is processed.
For a partner working part-time on $28,000 with $2,800 of employer SG contributions, LISTO produces a $420 credit to super. For a phased retiree who has scaled back to three days a week on $30,000, with $3,000 of SG contributions, LISTO produces the full $500. The amounts accumulate over time.
How does the government co-contribution match after-tax super contributions?
The government co-contribution operates differently. Where LISTO refunds contributions tax on concessional contributions, the co-contribution matches non-concessional (after-tax) contributions at 50 cents in the dollar, up to a maximum of $500. To receive the full $500 co-contribution, the member needs to make a non-concessional contribution of at least $1,000.
The income eligibility for the co-contribution is broader than for LISTO. The full $500 is available to members with income below $47,488 (2025-26). It phases out for incomes between $47,488 and $62,488, and is nil above $62,488. Members must also be under age 71 at the end of the income year, must have at least 10% of their income from employment or carrying on a business, and must have a total super balance at 30 June 2025 below $2 million.
Like LISTO, the co-contribution is automatic — the ATO cross-references the tax return with super fund records and deposits the co-contribution into the member's super fund, typically several months after the tax return is processed.
Can LISTO and the co-contribution be received in the same year?
Because LISTO applies to concessional contributions and the co-contribution applies to non-concessional contributions, both can be received in the same income year by an eligible member who makes both types of contributions. An eligible low-income earner who receives employer SG contributions and also makes a $1,000 non-concessional contribution can receive up to $1,000 of government-funded super in a single year. For members with the capacity to make even a small after-tax contribution, the co-contribution effectively delivers a guaranteed 50% return on the first $1,000 contributed — hard to replicate anywhere else.
Who benefits from LISTO and the co-contribution in practice?
In the context of retirement planning, LISTO and the co-contribution are most relevant for three groups. Lower-income or part-time working spouses of higher-income partners are often eligible for LISTO automatically on their SG contributions, and may also benefit from a modest non-concessional contribution to capture the co-contribution. Phased retirees who have scaled back employment income as they transition toward full retirement will often move into LISTO eligibility as their income reduces. And older workers in lower-paid roles who have continued working into their sixties may have been eligible for years without realising it.
For a household where one partner is on a higher income and the other is in a lower-paid or part-time role, confirming whether the lower-income partner is receiving both LISTO and the co-contribution is a quick advisory step that is often skipped. The combined household contribution strategy — higher-income partner maximising concessional contributions, lower-income partner capturing LISTO and co-contribution — is more effective than either optimising in isolation.
How do you confirm LISTO and co-contribution receipt?
LISTO is received automatically provided the tax file number is registered with the super fund and the tax return is lodged. If a member is eligible but the credit is not appearing in their super statement, the first step is confirming the TFN is registered. Co-contribution requires the member to actually make a non-concessional contribution during the year. Both payments typically appear in the super statement several months after the tax return has been processed.
Key takeaways
- LISTO (Low Income Super Tax Offset) is paid by the government into the member's super fund at 15% of concessional contributions, up to $500 per year, for members with income (assessable income plus reportable fringe benefits plus reportable employer super contributions) at or below $37,000. A member with $3,333 or more of concessional contributions receives the full $500. Payment is automatic once the tax file number is registered with the fund and the tax return is lodged.
- The government co-contribution matches non-concessional (after-tax) contributions at 50 cents in the dollar, up to $500, for members with income below $47,488 (full $500); the benefit phases out between $47,488 and $62,488 and is nil above that. The member must also be under age 71 at year end, have at least 10% of income from employment or business, and have a total super balance below $2 million at 30 June 2025. The co-contribution is automatic but requires the member to actually make a non-concessional contribution during the year.
- LISTO and the co-contribution can both be received in the same year — LISTO applies to concessional contributions and the co-contribution applies to non-concessional contributions, so they don't compete. An eligible member who receives employer SG contributions and makes a $1,000 non-concessional contribution can receive up to $1,000 of government-funded super in a single year. The co-contribution effectively delivers a guaranteed 50% return on the first $1,000 contributed — hard to replicate elsewhere at low income.
- The most commonly missed opportunities are for lower-income working spouses (eligible for LISTO automatically, and potentially co-contribution with a modest after-tax contribution) and phased retirees who have scaled back employment and moved into LISTO eligibility without realising. Confirming whether the lower-income partner in a household is receiving both payments is a quick advisory step that is frequently skipped.
Frequently asked questions
Who is eligible for LISTO?
LISTO applies to members whose income — defined as assessable income plus reportable fringe benefits plus reportable employer super contributions — is $37,000 or less for the income year. The government pays 15% of concessional contributions made during the year into the member's super fund, up to $500. The payment is automatic provided the tax file number is registered with the super fund and the tax return is lodged. Eligibility is assessed each year, so members who move into or out of the income threshold will find their entitlement changes year to year.
How do you qualify for the government co-contribution?
The co-contribution is available to members with income below $62,488 (2025-26), with the full $500 available below $47,488 and a phased-out benefit between those amounts. The member must also be under age 71 at the end of the income year, have at least 10% of income from employment or business, and have a total super balance below $2 million at 30 June 2025. Crucially, the member must actually make a non-concessional contribution during the year — at least $1,000 to receive the maximum $500 co-contribution. The ATO deposits the co-contribution automatically after the tax return is processed.
Can I receive both LISTO and the co-contribution in the same year?
Yes — the two payments target different contribution types and can both be received in the same year. LISTO is paid on concessional contributions (employer SG, salary sacrifice, personal deductible contributions); the co-contribution is paid on non-concessional (after-tax) contributions. An eligible member who receives employer SG contributions and also makes a $1,000 non-concessional contribution can receive up to $1,000 of government-funded super in one year — $500 LISTO and $500 co-contribution.
What if LISTO is not appearing in the super statement?
The most common causes are: the tax file number is not registered with the super fund (LISTO cannot be paid without a TFN on record — super funds withheld at a higher tax rate without a TFN), the tax return has not yet been processed (LISTO typically arrives several months after lodgement), or the member's income was above $37,000 for the year. The fix is usually to confirm the TFN is registered with the fund, then allow time after the tax return is lodged for the credit to arrive. If neither resolves it, contacting the ATO directly is the next step.