Thousands of low-income Tasmanians are set to receive a substantial boost to their retirement savings, following significant superannuation reforms announced recently. The changes, which will particularly benefit women and small business workers, have been described as long overdue by unions and industry groups alike. The new policies are expected to ease the financial burden on those most in need of support, offering additional funds to ensure greater financial security in retirement.
The reforms to the Low-Income Superannuation Tax Offset (LISTO) are a much-needed adjustment to a system that many have argued has unfairly penalised low-income workers for years. The new policies aim to correct this imbalance and provide a fairer, more sustainable future for thousands of Tasmanians who have struggled to save for retirement.
A Fairer System for Low-Income Workers
According to Labor Senator Richard Dowling, the reforms will have a significant impact on low-income workers in Tasmania, particularly in urban centres like Hobart and Launceston. Data suggests that approximately 13,500 workers in Greater Hobart and 7,500 in Launceston stand to benefit from the changes, which will directly affect their retirement savings. The primary changes include an increase in the LISTO payment from $500 to $810, as well as a rise in the income threshold for eligibility from $37,000 to $45,000.
This adjustment will help ensure that lower-paid workers, many of whom struggle to save for retirement, will receive a more equitable contribution to their superannuation funds. In a state with a significant number of small business owners and workers on modest wages, this is seen as a crucial step in addressing systemic financial inequities.
“In that sense, the reform pays off twice: it helps individuals build dignity and security for retirement, and it helps the country keep the system sustainable.” Senator Dowling commented. These measures are designed to lessen the long-term reliance on the Age Pension, offering a win for both workers and taxpayers alike.
The Impact on Women and Essential Service Workers
The changes are particularly significant for women, who are disproportionately affected by low superannuation balances due to factors such as part-time work, career interruptions, and the gender pay gap. Women in Super CEO Jo Kowalczyk highlighted the injustice of the frozen LISTO threshold, which had resulted in low-income workers, especially women, losing out on vital super contributions.
“This reform is particularly significant for the women who form the backbone of our essential services,” Kowalczyk said. These workers, who often include carers, retail assistants, and hospitality staff, have been financially penalised for saving for their retirement.
Superannuation experts have also emphasised the importance of these reforms in securing a more stable future for workers. AustralianSuper’s Paula Benson noted that every extra dollar put into super now would make a significant difference to the financial security of retirees in the future. The changes, she added, are a step towards ensuring that all Australians, regardless of income level, can retire with dignity.
