HESTA welcomes action on LISTO, boost to Australians’ retirement prospects

“It’s great to see the introduction of the Division 296 Super Bill, which represents a significant step forward in creating a more equitable and fairer superannuation system for all Australians. 

“Included in the Bill is an update to the Low-Income Superannuation Tax Offset (LISTO), which is something HESTA has advocated for over several years as it addresses an inequality in the system that impacts more than a million Australians – particularly women in lower-paid caring professions.

“It is rarely recognised that there is effectively only one tax break that is more likely to be paid to women than men – the LISTO – and it is fantastic to see recognition of the need for this policy to work as it was intended over the long-term.

“With around 80% of HESTA's more than one million members being women, many working in lower-paid caring professions, these reforms are significant and could mean tens of thousands of dollars extra at retirement. The changes represent critical progress in creating a more sustainable and equitable super system. More than 70,000 HESTA members will directly benefit, having missed out on LISTO under the previous policy setting.

“The decision to increase the maximum LISTO payment from $500 to $810 and permanently link it to personal income tax thresholds is terrific news for low-income Australians, as it will help ensure they don’t pay more tax on their super than on their take-home pay.

“The introduction of this Bill, in addition to recent reforms such as super on Paid Parental Leave, the increase in the super guarantee to 12%, and the '3 Day Guarantee' child care subsidy, reflects a welcome focus on addressing the persistent gender super gap.”