For many Australians on lower salary and wages, they cannot gain many of the tax advantages by making voluntary concessional contributions. As a rule, the more you earn, the more tax you save by contributing to Super.
To combat this inequity the Government has a system called LISTO (Low Income Superannuation Tax Offset) which is a rebate or a government contribution to offset the impact of Superannuation tax of 15% on all Superannuation contributions.
From 1 July 2027 the government is boosting LISTO by increasing the income threshold and payment cap.
On 13 October 2025, the Australian Government announced from 1 July 2027 the Low-Income Superannuation Tax Offset (LISTO) income 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.
This is a good initiative that many people on lower incomes many are not aware of. LISTO payments are made once your personal tax returns are completed and your Superannuation accounts report your contributions.
The average increase in the LISTO payment will be $410 for affected workers with a potential benefit at retirement of around $15,000 (in today’s dollars) depending on an individual’s income over their career.
Person earning $44,500
Under current settings, Iris earns $44,500 in 2027-28 and receives $5,340 in superannuation contributions. Iris is subject to $801 tax on these contributions (15 per cent). As Iris earns over the current threshold, they are not eligible for LISTO. Their net contribution will be $4,539. They will be subject to a higher rate of tax on their superannuation contributions (at 15 per cent) than their marginal tax rate (14 per cent in 2027-28).
Because of these changes, Iris will now receive a LISTO payment of $801, fully refunding the tax paid. Their net contribution will be $5,340.
