A super tax adjustment is needed to stop women’s savings falling further behind

Industry bodies Industry Super Australia and Women in Super say the stage two tax cuts should be matched by a change to the Low-Income Superannuation Tax Offset (LISTO) in a move that would add tens of thousands of dollars to the retirement savings of more than 700,000 women.

The LISTO was aligned with the tax-free threshold and 19% tax bracket and matches superannuation guarantee contributions – but the tax cuts have moved those brackets up the scale.

But the LISTO rate has stalled at $37,000 taxable income and the maximum tax refunded is $500 a year, seeing hundreds of thousands of women left behind.

More than 1.2 million Australians would see a boost in their super savings by increasing the LISTO to cover workers earning up to $45,000.

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