Record super tax offset available under new super changes

The Federal government is increasing the amount of support provided to low income workers by up to 62% from 1 July 2027. That’s when the maximum Low Income Super Tax Offset (LISTO) will increase from $500 to $810.

Including the government’s existing super co-contribution of up to $500, eligible Australians could receive $1310 a year to help grow their retirement savings.

A number of other recent rule changes, including the introduction of Payday Super and the payment of superannuation on government-funded Parental Leave Pay from 1 July 2025, will also help boost super balances for minimal personal outlay.

From 1 July 2027, more Australians will be eligible for the Low Income Super Tax Offset payment (LISTO) of up to $810 as the income threshold to qualify is increased from $37,000 to $45,000. 

An additional 770,000 Australians are expected to become eligible for LISTO, and 490,000 will receive a higher payment, bringing the total number of people who will benefit from the changes to 1.3 million¹ – about 60% of whom are expected to be women. This brings the total number of Australians who will be eligible for LISTO from 1 July 2027 to 3.1 million.

LISTO is automatically paid into eligible Australians’ super accounts after the end of the financial year to offset the amount of tax lower income Australians pay on their pre-tax super contributions. To be eligible, 10% or more of their total income must be from employment or self-employment.

From 1 July 2026, more Australians are likely to be eligible for the government’s $500 super co-contribution payment. This is because the amount of income you can earn, and still be eligible, is due to increase in line with average weekly earnings².

The lower income threshold at which people may be eligible to receive the full $500 co-contribution, is set to increase from $47,488 to $49,293. The upper income threshold at which the payment cuts out is also expected to increase, from $62,488 to $64,293.

To be eligible to receive the payment, you must make a personal, after-tax contribution to your super, and meet some other conditions -- and the government will contribute 50 cents for every dollar you add, up to a maximum of $500.

Under new Payday Super rules, from 1 July 2026, employers will need to pay super at the same frequency as regular pay, instead of quarterly.

The changes are designed to make it easier for people to track their compulsory employer super guarantee (SG) contributions and reduce the risk of unpaid super. 

Super paid with the same frequency as regular paydays compounds more effectively than quarterly payments – which should mean more super at retirement.

For example, a 25-year-old with an average super balance and average earnings for their age could expect to have $4,308 more in their super account at retirement if mandatory SG payments were paid fortnightly instead of quarterly³.

From the 2025-26 financial year, the government will pay superannuation on government funded Parental Leave Pay. 

As the amount of Parental Leave Pay is increasing from 120 days in 2025-26 to 130 days in 2026-27, the Paid Parental Leave Superannuation Contribution will also increase, in line with the increase in the number of paid leave days available to new parents.

Parental Leave Pay is based on the national minimum wage, which is currently $189.62 a day. It attracts super at the SG rate of 12%, which will be paid into super accounts after the end of the financial year.

Based on the current Parental Leave Pay rate, super paid on 130 days of leave equates to $2,958.07. The actual amount paid will be higher as the national minimum wage is set to increase on 1 July 2026.

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