Albanese Government Reforms Superannuation System
The Australian Council of Trade Unions (ACTU) has welcomed changes to the superannuation system introduced by the Albanese Government, aiming to create a fairer system and address existing inequities.
Previously, the Low-Income Superannuation Tax Offset (LISTO) had not been adjusted to keep pace with the tax system, resulting in low-income workers paying more tax on their super than on their take-home pay.
- By lifting the LISTO, a part-time aged care worker can expect an additional $60,000 at retirement, according to Super Members' Council modelling.
- Low-income workers will no longer pay more tax on their super than on their take-home pay, resulting in thousands more at retirement.
Today's announcement means that low-income workers will not pay more tax on their super than they do on their take-home pay and will have thousands more at retirement.
The Government's announcement to limit excessive tax concessions on high super balances will further contribute to a fairer superannuation system.
Author's summary: Albanese Government reforms superannuation for fairness.