Low-Income Super Boost: What It Means for Your Retirement

Posted at 13:21h in Business, News, Superannuation by Simmons Livingstone

0 Likes

Recent changes to the Low Income Superannuation Tax Offset (LISTO) are set to benefit millions of Australians on lower incomes. The government has increased both the eligibility threshold and the maximum payment, meaning more people will see a direct lift to their super balances.

The Key Changes

Eligibility threshold increases: Workers earning up to $45,000 annually can now access LISTO, up from $37,000.

Maximum offset rises: The top LISTO payment increases from $500 to $810.

These changes are designed to improve fairness in the super system and provide low-income earners with additional support for their retirement savings.

Why This Matters

Even relatively small increases to super can make a meaningful difference over time due to compounding. For part-time workers, casual employees, and those on lower wages, LISTO ensures that more of the contributions they already make are returned to them in super.

This also encourages better financial planning. With higher offsets, employees can:

Grow their retirement balances faster.
Consider small voluntary contributions knowing their overall balance will be supported.
Plan for retirement with a clearer understanding of how government incentives help.

What Individuals Should Do

Check your pay slips and super statements: Make sure your employer is reporting contributions correctly.

Understand your entitlements: Know the maximum LISTO you can receive based on your income.

Plan ahead: Even small, regular contributions can be boosted further when combined with government offsets.

For low-income earners, these changes are an opportunity to increase retirement savings without affecting take-home pay. Staying informed and reviewing your super can help you make the most of these offsets.

Simmons Livingstone can help you understand your LISTO entitlements, review your super contributions, and develop strategies to maximise retirement savings. Contact us today on 1800 618 800 or email admin@simmonslivingstone.com.au to arrange a super review or advice session.