Albanese Government Reforms Superannuation System
The Australian Council of Trade Unions (ACTU) has welcomed changes to the superannuation system introduced by the Albanese Government, aimed at creating a fairer system for workers.
The reforms address inequities built into the system by previous Coalition Governments, particularly the Low-Income Superannuation Tax Offset (LISTO). The LISTO ensures low-income workers pay less tax on their superannuation than on their take-home pay.
By lifting the LISTO, a part-time aged care worker will take home an additional $60,000 at retirement, according to Super Members’ Council modelling.
These changes will prevent low-income workers from paying more tax on their superannuation than on their take-home pay, resulting in thousands more at retirement. The reforms will also rein in excessive tax concessions on the highest super balances, making the superannuation system fairer.
Author's summary: Albanese Government introduces fairer superannuation system.