Australia has 2.6 million workers classified as low-income earners, 60% of whom are women. Women In Super is calling for the LISTO to be increased and future proofed, ensuring that it is permanently tied to income tax rates.

The low income super tax offset, or LISTO, gives a payment of up to $500 to people who earn $37,000pa or less. It’s a government superannuation contribution designed to ensure that low-income earners do not suffer a tax penalty for making super contributions.

“The lowest paid people in the country continue to be unfairly shortchanged with the LISTO, paying a tax penalty that high income earners are not paying on their Superannuation Guarantee (SG) contributions. Low-income earners are the only group who pay more tax on their super than they do on their take home pay. And this is the group who can least afford to pay a tax penalty and they are mostly women,” says Women in Super CEO Jo Kowalczyk. 

From July 2024, super will be paid on the government paid parental leave scheme. Women is Super is calling for Superannuation Guarantee contributions to also be given to those receiving the carer’s payment, 74% of whom are women. 

Across the country, part-time nannies, housekeepers and domestic workers who work under 30 hours do not receive super contributions. This is one of the last remaining groups of people doing paid work under 30 hours who do not receive super contributions, and they are overwhelmingly women, and are at risk of retiring with no savings.

Women in Super is advocating for a fair, equitable and sustainable system whereby every woman retires with an adequate income to support a retirement with dignity.  They are urging the government to implement measures for all the women who will retire between now and when the gender super gap closes, recognise and compensate care work economically, and ensure it is shared between women and men, and implement the full suite of recommendations of the Women’s Economic Equality Taskforce Report (2023) to unleash the full capacity and contribution of women to the Australian economy.