Published: 14 Oct 2020
Industry bodies Industry Super Australia and Women in Super say the stage two tax cuts should be matched by a change to the Low-Income Superannuation Tax Offset (LISTO) in a move that would add tens of thousands of dollars to the retirement savings of more than 700,000 women.
The LISTO was aligned with the tax-free threshold and 19% tax bracket and matches superannuation guarantee contributions – but the tax cuts have moved those brackets up the scale.
But the LISTO rate has stalled at $37,000 taxable income and the maximum tax refunded is $500 a year, seeing hundreds of thousands of women left behind.
More than 1.2 million Australians would see a boost in their super savings by increasing the LISTO to cover workers earning up to $45,000.
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