Today the Albanese Government is releasing draft legislation on reforms to boost the superannuation savings of low‑income workers and make superannuation tax concessions fairer and more sustainable.
We're boosting the Low‑Income Superannuation Tax Offset and making a number of important changes to better target superannuation concessions for large balances.
This is all about helping workers earn more, keep more of what they earn and retire with more at the same time as we strengthen our superannuation system.
The measure we're consulting on from today reduces the tax concessions available to individuals whose total superannuation balance exceeds $3 million.
The amendments maintain the concessional treatment of superannuation and makes superannuation tax concessions more targeted for those with large balances.
The draft legislation introduces a second threshold of $10 million to make superannuation tax concessions even more targeted, and indexes the large balance thresholds of $3 million and $10 million. These changes will apply to realised earnings from 1 July 2026.
These changes are consistent with the objective of superannuation, to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way.
The Albanese Government is also boosting the superannuation savings of more than a million low‑income workers through changes to the Low‑Income Superannuation Tax Offset (LISTO) that ensure they receive a fairer tax concession on their superannuation contributions.
The release of the draft legislation follows Treasury's targeted consultations with the sector and reflects the Government's intention of introducing the legislation as soon as possible in 2026.
The Government welcomes feedback from stakeholders on the draft legislation and explanatory materials.
Consultation closes on 16 January 2026.
Our economic plan is all about helping Australians earn more, keep more of what they earn and retire with more while boosting living standards and modernising our economy, and our improvements to super are an important part of that.
