13 October 2025
Attributable to HESTA CEO Debby Blakey:
We are thrilled to welcome the Federal Government’s announcement today on the Low-Income Superannuation Tax Offset (LISTO), which will boost the retirement outcomes of more than a million Australians on low incomes.
Changes to increase LISTO eligibility to the second marginal tax threshold of $45,000 and lift the payment amount in line with the superannuation guarantee serve as an important equity measure. The changes announced today will help ensure no working Australian is paying more tax on their super contributions than on their take-home pay.
For many years, HESTA and others in the sector have passionately advocated for this reform, which is a significant step forward in addressing the gender super gap that still sees women retire on average with around 25% less super than men.
The LISTO is the only tax concession more likely to be paid to women than men, as they tend to have lower incomes than men and face higher effective marginal tax rates than men.
Nearly 80% of HESTA’s more than one million members are women, many of whom work in typically lower-paid sectors such as aged care and early childhood education and take time out of the paid workforce to care for others.
In FY24, around 130,000 HESTA members received a LISTO payment, but more than 70,000 members earning between $37,000-$45,000 missed out on $35 million in super contribution ‘refunds’ because of the LISTO misalignment with tax brackets.1
Lifting the LISTO eligibility and payment amount will help ensure more than a million low-income earners can build a more secure retirement, and help create a fairer super system. Research has shown the adjustments could add an extra $60,000 at retirement for workers who remain in the second income tax bracket throughout their working lives.2
Dignity in retirement should be for everyone and HESTA is committed to keep advocating for change that will help improve our members’ financial security in retirement.
Ends.
1 Based on HESTA members who earned between $37,000 and $45,000 in FY23.
2 https://smcaustralia.com/app/uploads/2025/09/Breaking-the-deal_Why-LISTO-needs-to-be-fixed.pdf