The Super Members Council welcomes the passage of laws through the Federal Parliament last night that will boost the super of 1.3 million of the nation’s lowest-paid workers, who are mostly women.
The Council commends parliamentarians for swiftly passing the Government’s Building a Stronger and Fairer Super System Bill which will unfreeze the Low-Income Super Tax Offset (LISTO) for the first time in 13 years.
This historic reform will powerfully lift the retirement incomes of the very lowest paid workers across Australia. For a woman who earns the minimum wage across her whole working life, our modelling shows it could deliver up to $60,000 more in her super by retirement – dramatically lifting her income.
The reforms lift the income threshold for who is eligible for this super top-up from $37,000 to $45,000 – and boost the amount of the rebate from $500 to $810.
Crucially, the LISTO payment rate will be pegged to both the second tax bracket and the Super Guarantee rate, so it would automatically move in line with any future changes in these rates over time.
Over the past two years, the Super Members Council has advocated strongly for this reform to unfreeze the LISTO, building strong momentum for today’s historic passage of the legislation.
The Government’s decision will strengthen the super of Australia’s very lowest-paid workers and help to further narrow the gender super gap – because a majority of those who will benefit are low-wage women.
The LISTO is a key fairness measure to top up the super of low-income workers so they don’t pay a higher rate of tax on their super than on their take-home pay.
It had been frozen for 13 years and fallen behind changes to tax brackets and super contribution rates, steadily eroding its value over that time.
The Council’s research showed 1.3 million workers missed out on a total of $3 billion since 2020 due to the LISTO being frozen, with women around 60% of those affected.
Currently, a cleaner earning $42,000 gets only a 1% concession on their super tax compared to their marginal income tax, while a senior manager earning $220,000 gets a 30% tax concession. These LISTO reforms will help to make the super system fairer for low-income workers.
The Council’s research shows women (740,000 in 2025–26) had been disproportionately affected by the LISTO freeze, missing out on $295 million this year alone.
“Unfreezing the LISTO is a big win for younger workers and mums working part-time in frontline jobs in lower paid sectors as carers and aides, shop assistants, hospitality workers, and many health workers,” says Super Member’s Council’s Deputy CEO Georgia Brumby.
“This is a landmark win for 1.3 million low‑paid Australians — mostly women — whose retirement savings will now finally get the fair go they deserve,”
“Unfreezing and fixing the LISTO corrects a longstanding injustice that saw low income workers miss out year after year while higher income earners continued to receive far larger tax concessions.”
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The opinions above are those of the author in their capacity as spokesperson for Super Members Council of Australia (SMC). SMC, the authors and all other persons involved in the preparation of this information are thereby not giving legal, financial or professional advice for individual persons or organisations.
