Tax Planning
How the LISTO Boost Will Benefit Low-Income Workers
In July 2027, Australia’s LISTO changes will increase the offset to $810 and raise eligibility to $45,000—this guide shows how low-income workers can make the most of the update.
By NomadicTax Research Team • 5-8 min read • November 16, 2025
## Understanding LISTO and What’s Changing
The **Low Income Superannuation Tax Offset (LISTO)** exists so that low-income earners don’t pay more tax on their super contributions than on their wages. Currently: earnings under **$37,000** qualify, with a maximum offset of **$500**. ([treasury.gov.au](https://treasury.gov.au/publication/p2025-709385-listo?utm_source=openai))
### What’s New from 1 July 2027
- Eligibility will extend to incomes up to **$45,000** — this matches the second income tax bracket. ([treasury.gov.au](https://treasury.gov.au/policy-topics/superannuation/reforms-support-low-income-workers-build-stronger-super-system?utm_source=openai))
- Maximum offset payment increases from **$500 to $810**. ([treasury.gov.au](https://treasury.gov.au/policy-topics/superannuation/reforms-support-low-income-workers-build-stronger-super-system?utm_source=openai))
- Number of eligible individuals rises to **3.1 million**, up from roughly 1.8 million under old rules. ([ministers.treasury.gov.au](https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/reforms-support-low-income-workers-and-build-stronger?utm_source=openai))
## Who Benefits Most?
- **Low-earners**, particularly those in casual, part-time, or insecure work. Many currently outside eligibility will now receive benefits.
- **Women**, who are overrepresented in lower paid sectors. Around 60% of those gaining benefit are expected to be women. ([ministers.treasury.gov.au](https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/reforms-support-low-income-workers-and-build-stronger?utm_source=openai))
- **Young workers**, since compounding works more significantly over a longer horizon.
## Calculating the Impact: Example
| Scenario | Income | Current LISTO | New LISTO from 2027 | Difference |
|----------|--------|----------------|-----------------------|------------|
| Retail worker earning $35,000/year | $35,000 | $500 | $810 | +$310 annually |
| Cleaner earning $40,000/year | $40,000 | $0 (ineligible) | $810 | +$810 annually |
| Nurse on $55,000/year | $55,000 | $0 | $0 | No change |
Over a 40-year career, the accumulating effect of even a few hundred dollars extra per year in super can mean **thousands more** in retirement savings.
## What Low-Income Workers Should Do Now
- **Check your estimated income for 2026-27**, to understand if you’ll qualify under the new threshold.
- **Ensure all employer super contributions are being paid correctly**, especially under the new Payday Super rules (from 1 July 2026).
- **Keep good records** of your income and super contributions; differences can be applied through tax returns or via super fund queries.
- **Speak to your super fund** about how they’ll implement LISTO increases, so you know when and how the benefits apply.
## Summary
These changes to LISTO reflect long-delayed adjustments to inflation, tax brackets, and fairness. For many Australians earning under $45,000, this could be one of the most meaningful super changes in years—leading to better retirement outcomes and greater equity in the system.