The reforms, due to take effect from 1 July 2027, will see the LISTO income threshold rise from $37,000 to $45,000. Additionally, the maximum payment will increase from $500 to $810. This development is particularly significant for women and those employed part-time or casually, who are often the most affected by the existing superannuation disparities.
Rest's Chief Strategy Officer, Tyrone O’Neill, articulated the importance of these reforms in addressing systemic inequities. "The passage of these reforms through Parliament is an important milestone for fairness in Australia’s super system, particularly coming just after International Women’s Day," he stated. O’Neill emphasised that these changes are a crucial step towards narrowing the gender super gap, which continues to be a pressing issue in Australia.
The reforms are expected to boost retirement outcomes for nearly half a million Rest members who currently receive the LISTO each year. Notably, approximately 300,000 of these recipients are women. O’Neill highlighted the significance of this demographic, saying, "They are an important measure to help close the gender super gap by boosting retirement outcomes for low‑income workers, especially women, while also reminding us there is more work to do."
For years, Rest has been a vocal advocate for these changes, consistently pushing for reforms that would benefit low-income earners. O’Neill noted, "After years of advocacy, this change is now locked in, delivering better long-term retirement outcomes for low-income workers." This sentiment underscores the organisation's commitment to ensuring a more equitable superannuation system for all Australians.
The reforms have been met with widespread support, not only from Rest members but also from various stakeholders who recognise the need for a more inclusive superannuation framework. O’Neill expressed gratitude towards the government, stating, "These reforms reflect how many Australians work today and confirm that the super system can evolve to better support those on lower incomes. Rest has long called for this change, including through our 2025–26 Pre‑Budget Submission, and it has strong support from our members. We congratulate the Federal Government and the Parliament on passing these long-awaited fairness reforms."
The legislative changes come at a time when there is increasing awareness and dialogue around financial inequalities, particularly those affecting women. The timing, closely following International Women's Day, adds a symbolic layer to the reforms, reinforcing the ongoing efforts to address gender disparities in retirement savings.
As the superannuation industry continues to evolve, these reforms mark a pivotal moment in the journey towards a fairer system. The increased LISTO payments and higher income threshold are expected to provide much-needed relief and improved financial security for those who need it most.
The passage of these reforms represents a significant victory for low-income earners and highlights the potential for policy changes to drive social equity. As Rest and other stakeholders continue to advocate for further improvements, the focus remains on ensuring that the superannuation system serves all Australians equitably, regardless of their income level.
