It\u2019s official: Australians are about to see a boost to their superannuation, with a $810 cash boost heading to the pockets of low-income earners. New laws passed in parliament will increase the low-income super tax offset (LISTO), offering more retirement savings to millions of workers across the country. But what does this change mean for your future savings, and who will benefit most from it?<\/p>\n\n\n\n
The LISTO was already a government initiative designed to help lower-income earners save for retirement by offsetting the 15% tax on super contributions. Under the newly passed legislation, the LISTO<\/a> cut-off threshold will increase from $37,000 to $45,000, aligning with the second-lowest tax bracket. The maximum LISTO payment will also rise, from $500 to $810, providing an extra $410 to millions of Australians.<\/p>\n\n\n\n While it\u2019s a good start, the changes go beyond just increasing the amount \u2014 they are part of a wider effort to reduce the growing wealth gap in retirement savings. Treasurer Jim Chalmers explained that this reform would benefit about 1.3 million Australians, including a significant portion of women and young people, who often find it harder to accumulate retirement savings.<\/p>\n\n\n\n