Changes to low-income super tax offset to support lower income workers

Two changes will come into effect from 1 July 2027:

• Lifting eligibility for the LISTO to fully cover the first two tax brackets, from $37,000 to $45,000
• Increasing the cap on the rebate from $500 to $810, which will fully offset the tax these workers pay on their employer super contributions

These will ensure low‑income workers receive a fairer tax outcome on their super contributions to align with the government’s third round of tax cuts taking effect in 2027.

Research from the Super Members Council (SMC) showed women had been disproportionately affected by the LISTO freeze, making up around 60% of the 1.2 million workers affected.²

It also indicated that by making these changes, a worker in the bottom 20% of wage earners could be better off by $60,000 in their super balance by retirement.

These changes will benefit younger and part-time workers, and those working in lower paid sectors such as carers and aides, retail assistants, hospitality and health workers.

Eligible members don’t need to apply for the LISTO – they are paid automatically when the member lodges their tax return, if the fund has the member’s tax file number. Learn more about the LISTO and if you’re eligible.

GESB CEO Ben Palmer warmly welcomed the changes that will improve retirement for many of its members, the majority of which are women.

“Most of our members work in the WA public sector and many across healthcare, education and community services – sectors that traditionally employ a high percentage of women,” Ben said.

“We know how important it is that our members – and all Australians – achieve a quality retirement. These changes make the super system fairer and could help make a big difference to super balances in the long term.”