TTR change biggest detrimental affect

An estimated 1.26 million people will be detrimentally affected by the proposed superannuation Budget measures, and over 4.3 million will be better off, according to the Association of Superannuation Funds of Australia (ASFA).

Pulling figures from Budget papers, the Australian Prudential and Regulation Authority (APRA), and the Australian Taxation Office (ATO), ASFA said some individuals could be impacted by more than one measure.

The transition-to-retirement (TTR) change had the largest effect on those worse off, with over 550,000 estimated to be affected.

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This was followed by the $25,000 concessional contribution cap and the lower Division 293 threshold changes (up to 500,000 and many of those affected by both), and the $1.6 million transfer cap change (110,000).

Table 1

However, 3.2 million individuals would be better off thanks to the low income superannuation tax offset (LISTO) measure.

This was followed by 850,000 for the tax deduction for personal contributions, and 230,000 for the catch-up concessional contributions provision.

Table 2




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Hi everyone. have question.
Is the LISTO automatically applied by the ATO when the personal tax return is done ??
thanks in advance
John

John this offset is for the clients super fund, not personal. I have taken this from the ATO site for a explanation and a source for you.

In the 2016-17 Budget it was announced that from 1 July 2017 a Low Income Superannuation Tax Offset will be introduced.

This will be a tax offset available to superannuation funds based on the tax paid on concessional contributions made on behalf of low income earners. The offset will mean that individuals with an adjusted taxable income up to $37,000 will receive a refund into their superannuation account of the tax paid on their concessional superannuation contributions, to a cap of $500.

The ATO will determine a person’s eligibility for the Low Income Superannuation Tax Offset and advise their superannuation fund annually.

Have a nice weekend John

thanks for the answer TJ, much appreciated.
so if Im right;
Because its a tax offset available to superannuation funds based on the tax paid on concessional contributions made on behalf of income earner (in the case of adjusted taxable income up to $37,000). Say when an employer deposits super contribs into the super fund (the usual 9.25%) ;
Then the ATO also contributes ??
Is it the case for both SMSF or the usual employer contributions (non SMSF) ??
that right ??
john

Its usuaĺly a lump sum paid into the super account after completion of a tax return and upon taxable income known this could be months.

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