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Re: LISTO

Initiate

Views 134

Replies 5

Good Day,

 

I have questions related to LISTO and Super co-contribution.

a) LISTO: In 2018/2020 and 2019/2020 I seemed to be eligible for LISTO payment, but could not find it in my Super.

All criteria are in my opinion fulfilled. However, no LISTO payment was conducted. Is there an issue if my business income is only through a TRUST, and if so why would that be? This is my only income and I do not understand why this 10% rule stops me from receiving the LISTO? Seems very strange to me. Also there is no official link between the 10% rule and the LISTO, this is very confusing. (the 10% rule is only listed for Super co-contribution, but also here I would not understand this limitation for income through a trust) Regards felixh   

 

 

 

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee Registered Tax Practitioner

Replies 2

Bruce - Why would that be? - What is the reason behind it.

 

If your business is registered as a sole trader, it is OK and you receive up to AUD 500 , - if your income is from a trust, it is not OK to receive LISTO (or co-contribution) - where is the logic behind that?

Pretty frustrating ....

Any explanation?  So, I assume if you receive your income as a TRust distribution, no chance?? - what about arranging salary payments through the business/trust, that should be OK then?? Or would that also be a nogo?

 

Trust income could be anything  -  LISTO was designed to remove tax on super contributions for low income employees.

 

Just have the trust pay a salary.

 

5 REPLIES 5

Devotee Registered Tax Practitioner

Replies 4

a) LISTO: In 2018/2020 and 2019/2020 I seemed to be eligible for LISTO payment, but could not find it in my Super.

All criteria are in my opinion fulfilled. However, no LISTO payment was conducted.

Is there an issue if my business income is only through a TRUST, and if so why would that be?

This is my only income and I do not understand why this 10% rule stops me from receiving the LISTO?

Seems very strange to me. Also there is no official link between the 10% rule and the LISTO,

this is very confusing. (the 10% rule is only listed for Super co-contribution, but also here I would not understand this limitation for income through a trust) 

 

Looks like trust income is not employment or business income for LISTO.

 

 

 

Initiate

Replies 3

Bruce - Why would that be? - What is the reason behind it.

 

If your business is registered as a sole trader, it is OK and you receive up to AUD 500 , - if your income is from a trust, it is not OK to receive LISTO (or co-contribution) - where is the logic behind that?

Pretty frustrating ....

Any explanation?  So, I assume if you receive your income as a TRust distribution, no chance?? - what about arranging salary payments through the business/trust, that should be OK then?? Or would that also be a nogo?

 

Cheers

Most helpful response

Devotee Registered Tax Practitioner

Replies 2

Bruce - Why would that be? - What is the reason behind it.

 

If your business is registered as a sole trader, it is OK and you receive up to AUD 500 , - if your income is from a trust, it is not OK to receive LISTO (or co-contribution) - where is the logic behind that?

Pretty frustrating ....

Any explanation?  So, I assume if you receive your income as a TRust distribution, no chance?? - what about arranging salary payments through the business/trust, that should be OK then?? Or would that also be a nogo?

 

Trust income could be anything  -  LISTO was designed to remove tax on super contributions for low income employees.

 

Just have the trust pay a salary.

 

Initiate

Replies 1

THX Bruce, yeah I also found that out the hard way. Did just set up the Payg and got software installed to do STP and cleared all with ATO to use this SW. However, this is then for this year 2020/2021only, and this year the results were better anyhow - so no LISTO or co-contribution anyhow.

 

Still thx for your input. (I found the info in a table from one of the major super companies, where they suggested paying a salary would tackle the issue. So all good now. THX again for your input! Cheers.

ATO Community Support

Replies 0

Thanks @Bruce4Tax for assisting @felixh and our other community members you have helped. Glad you got what you needed @felixh Smiley Happy