Everyone would love to have a safe retirement plan, without much fuss. Though the problem is not everyone earns enough pay to save for later. For low-income earners, thinking about retirement saving could be an unpleasant subject. In order to solve this issue, the ATO proffers a system to help low-earners to save for their retirement. LISTO proves to be a great help for retirement savings of low earners. Under the same programme, a superannuation payment of 10 to 500 dollars is provided to the employer. Now, let us take an overview of the programme.
Meaning of LISTO:
It is a systematically program brought up by the government to provide an aid in saving for retirement of lower earners. Under this system, if the taxable income of an individual is equivalent or less than 37000 dollars, they will receive a superannuation payment. The government contribution will range from 10 to 500 dollars.
This implies that this program will protect the ones with low and who would find it way more difficult than others to keep retirement funds. It is available for both single and married couples. And the payment lies between 500 dollars (maximum) to 10 dollars (minimum).
Eligibility to qualify for this offset are given as follows:
The super tax offset for low-income earners will be sent directly to the super fund account of the users when the customers file an individual tax return Melbourne.
Some of the important criteria for qualifying for LISTO are:
- The adjustable tax income of an individual must be $37,000 or less.
- During the financial year, concessional contributions must be paid by the employer to a complying super fund.
- For a super fund a tax file number is also important.
- Ten percent of total revenue must be generated by employment or venture.
Moving forward let us talk about the amount that one will receive under lower income super tax offset. First of all, the amount that one will gain depends upon the taxable income and contribution made in the super fund. A maximum of 500 dollars and a minimum of 10 dollars is entitled under LISTO. The sum is allocated and determined as the 15% which was before contribution amount. The employer makes a contribution to the super fund.
Users who have previously submitted an individual income tax return Melbourne, with that who have been waiting for super tax offset will receive it in their super account immediately now. If not, the user must do it right away.
Now you can manually calculate or do LISTO online by adding up the concessional superannuation contributions.
It is not as complicated as it seems, in-fact it’s quite simple. We are aware that LISTO is a refundable tax offset. This implies that the fund owes employer a specific amount and the offset amount will be used to reduce the debt.
It is important to remember that the ATO decides and pays for the list after the income tax return Melbourne is completed.