LISTO Super Women and Low Income Super

Low-Income Superannuation Tax Offset Increase of Threshold

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Treasurer Jim Chalmers recently announced a number of proposed reforms to Super on the 13th October 2025. One in particular that should bolster the superannuation of many young people and women is the Low-Income Superannuation Tax Offset (LISTO). The LISTO provides additional support to low income workers to help build their retirement savings.

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 to account for recent increases in the Superannuation Guarantee rate.

You don’t need to do anything to receive a LISTO payment. Just make sure your super fund has your tax file number (TFN). Without your TFN, your super fund can’t accept a LISTO payment.

The LISTO is 15% of the concessional (before tax) super contributions you or your employer pays into your super fund up to a maximum of $500. This is designed to ensure that low-income earners generally don’t pay more tax on their super contributions than on their take-home pay.

You’re eligible for the LISTO if you satisfy all of the following requirements:

  • you or your employer pay concessional (before tax) contributions (including super guarantee amounts) for the year to a complying super fund
  • you earn $37,000 or less a year (until 30th of June 2026) or $45,000 (from 1st July 2027)
  • you have not held a temporary resident visa at any time during the income year (note that New Zealand citizens in Australia are eligible for the payment)
  • you lodge a tax return and 10% or more of your total income comes from business and/or employment, or you don’t lodge a tax return and 10% or more of your total income comes from your employment.

If you have any questions related to the LISTO, don’t hesitate to get in touch with us at STS Accounting.