Policy and advocacy

Fairer taxes on super for low-income earners

On 10 March 2026, the Australian Parliament passed Low-Income Superannuation Tax Offset (LISTO) reform, signalling a win for millions of Australians on low and modest incomes.

The reform increases:

• the income threshold from $37,000 so people earning up to $45,000 will be eligible for the LISTO, and
• the LISTO cap from $500 to $810 to fully offset the tax applied to Superannuation Guarantee contributions.

These changes will commence from 1 July 2027.

When the Government introduced compulsory superannuation in 1992, the deal at the heart of superannuation was simple: if you save for retirement, you will pay less tax on that money than on your wages.

It’s one of the reasons Australia has a world-class superannuation system.

But for low-income earners, the deal hasn’t always worked. As they pay little or no income tax, many low-income workers end up paying a similar – or even greater – rate of tax on their super than the rate they pay on their wages. That’s not fair.

That’s why the government introduced the Low-Income Superannuation Tax Offset (LISTO) – a rebate on their superannuation tax designed so that low-income earners get a tax concession for saving into super like everyone else does.

But the LISTO had not changed since 2017, while tax brackets have shifted and the Superannuation Guarantee rate has increased over time.

That’s why the Government announced vital reforms to LISTO, aiming to boost the super savings of 1.3 million low-paid workers, mostly women¹. We welcome Parliament passing these reforms into law.

It is particularly welcome that the legislation now explicitly links the LISTO payment rates and thresholds with the personal income tax thresholds and the Superannuation Guarantee rate, ensuring that LISTO will remain consistent with these settings for the long term.

These reforms are vital to make sure the central deal of superannuation works for all Australians.