Millions of lower-income workers in Australia are set to benefit from proposed superannuation changes, primarily through an increase in the Low-Income Superannuation Tax Offset (LISTO).

Starting 1 July 2027, the eligibility threshold for LISTO will rise from $37,000 to $45,000 a year, and the maximum tax offset will increase from $500 to $810. 

The Treasury says the reform will help deliver a more secure retirement for 1.3 million Australians, of which about 60 per cent are women, with the total number of Australians becoming eligible for LISTO increasing to 3.1 million. 

It will benefit workers with incomes between $28,000 and $45,000, with an average increase in the LISTO payment of $410. 

According to Super Members Council modelling, the changes could mean some lifetime low-paid workers could have up to $60,000 more in their super savings by retirement. 

The ACTU welcomed the changes to LISTO, which it says was designed to ensure workers on low income paid less tax on their super than they did on their take-home pay, however, hadn’t been adjusted to keep up with the rest of the tax system. 

“Super has always been about everyone having a dignified retirement, not a tax minimisation scheme for the ultra-wealthy,” Secretary Sally McManus says. 

Super fund HESTA said the important equity measure was a significant step forward in addressing the gender super gap.