Low-income workers could net up to $60,000 more in superannuation savings by retirement under landmark changes announced by the federal government this week.
The government will increase the low-income superannuation tax offset (LISTO) by $310 to $810 and raise the eligibility threshold from $37,000 to $45,000 from 1 July 2027.
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 by lifting the LISTO to cover the first two tax brackets.
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.
“The big winners in this announcement are around one million low-income Australians, who are mostly women, working part-time, and who will now have more money for retirement,” said ACTU Secretary Sally McManus.
