The Albanese Labor Government today introduced legislation to boost the superannuation savings of low‑income workers and ensure superannuation tax concessions are fairer and more sustainable.
These changes will make the super system fairer from top to bottom.
Our reforms are all about helping workers earn more, keep more of what they earn, and retire with more, while also strengthening Australia's world‑class superannuation system.
We're boosting the superannuation savings of more than a million low‑income workers through changes to the Low Income Superannuation Tax Offset (LISTO) so they receive a fairer tax concession on their superannuation contributions.
From 1 July 2027, the LISTO threshold will increase from $37,000 to $45,000 to match the top of the second income tax bracket.
The maximum payment will also increase to $810, reflecting recent increases in the Superannuation Guarantee rate.
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.
The legislation also delivers on the Government's long standing policy commitment to better target superannuation tax concessions for individuals with large balances.
From 1 July 2026, superannuation tax concessions will be made fairer and more sustainable by reducing tax breaks for those with balances over $3 million.
These changes are consistent with the legislated objective of superannuation, to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way.
We thank the superannuation industry and the broader community for their engagement and feedback on this legislation.
Labor built the superannuation system, and this legislation builds on our record of reform including lifting the Superannuation Guarantee to 12 per cent, paying super on paid parental leave and legislating payday super to start on 1 July this year.
The Albanese Labor Government is working to address inflation, boost productivity and make the budget more sustainable and the legislation we've introduced today is an important part of our efforts.
