LISTO to help boost women’s super
New Government initiative to benefit women's superannuation.
The government’s introduction of the Low Income Superannuation Tax Offset (LISTO) is an important step towards helping secure the retirement futures of Australians, with new data showing 63 per cent of the policy’s beneficiaries will be women.
The offset will provide a refund of contributions tax for Australians earning up to $37,000, up to a maximum of $500 a year, with the Association of Superannuation Funds of Australia (ASFA) estimating 3.1 million Australians will receive the benefit.
When it was first announced by the Labor government in 2010, the Low Income Superannuation Contribution (LISC) was to take effect from July 2012 and would result in 3.6 million lower-income earners receiving up to $500 each year from the government, paid directly into super accounts.
While the Coalition government had originally intended to end the five-year LISC policy on 30 June this year, the decision was overturned as part of changes to the super system announced in the 2016 budget and instead, LISTO will replace LISC under the new regime in a move ASFA said was “most welcome”.
Releasing its projections on the impact of the new super tax changes, the association’s chief executive Martin Fahy noted that the policy should be seen as an important step towards lifting the retirement income of Australian women, with ASFA data showing approximately 63 per cent of the beneficiaries of the offset will be female.
“They can expect to receive around $260 on average, which is a good help because the average super balance of recipients is less than $50,000,” Fahy said.
According to ASFA figures, about 15 per cent of the recipients of the LISTO are aged 30 to 39 and in addition the government’s enhanced tax offset for spouse contributions – for those whose spouse earns less than $40,000 – will benefit a further 10,000 people a year.
ASFA has been vocal in the past of its support for LISTO, with its response to the 2016 budget arguing the offset will be an important incentive for low income earners to save for their retirement.
“ASFA has long advocated for support for low income earners contributing to superannuation. The LISTO scheme provides this and makes the superannuation system stronger,” the association said in its budget response last year.
The association largely welcomed the government’s new super taxation regime, estimating about 850,000 Australians would be able to claim a tax deduction for personal contributions to super and an additional 800,000 could benefit from other changes announced in last year’s budget.
By Daniel Paperny
26 Jun 2017
Hot Issues
- ATO encourages trustees to use voluntary disclosure service
- Beware of terminal illness payout time frame
- Capital losses can help reduce NALI
- Investment and economic outlook, August 2024
- What the Reserve Bank’s rates stance means for property borrowers
- How investing regularly can propel your returns
- Super sector in ASIC’s sights
- Most Popular Operating Systems 1999 - 2022
- Our investment and economic outlook, July 2024
- Striking a balance in the new financial year
- The five reasons why the $A is likely to rise further - if recession is avoided
- What super fund members should know when comparing returns
- Insurance inside super has tax advantages
- It’s never too early to start talking about aged care with clients
- Capacity doubts now more common
- Most Gold Medals in Summer Olympic Games (1896-2024)
- SMSF assets reach record levels amid share market rally
- Many Australians have a fear of running out
- How to get into the retirement comfort zone
- NALE bill passed by parliament
- Compliance focus impacts wind-ups
- LRBA interest rates increase for 2025
- Income-free areas set to increase from 1 July
- Most Spoken Languages in the World
- Middle-to-higher incomes boosting SMSF growth
- Investment and economic outlook, May 2024
- Transitioning into retirement: What you should know
- Plan now to take advantage of stage 3 tax cuts
- Deeming freeze a win for Age Pensioners
Article archive
- April - June 2024
- January - March 2024
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
- January - March 2015
- October - December 2014
July - September 2017 archive
- ATO to release further guidance on reserves
- A real-world benchmark for SMSF performance
- How is your super going, ready for retirement?
- Our 'hardest' SMSF tasks
- Lack of literacy promotes unrealistic goals
- Young investors: Time is on your side
- Is your SMSF retirement-ready?
- Key Economic Indicators, 2017 - updated
- Investors acting their age
- ATO locks in details, addresses panic on real-time reporting
- Government ‘undermines’ tax system in new moves on property expenses
- Multiple super accounts in a 'gig' society
- Why Australian retirees aren't happy and what we can do about it
- Doing a budget is a good idea but ....
- Technical expert flags estate planning strategies for 2017-18
- Government to shut down salary sacrifice loophole
- Items that heat up your depreciation deductions
- ‘Tens of thousands’ of SMSFs at risk with ECPI
- Do’s and don’ts of estate planning
- LISTO to help boost women’s super
- Smart ways to stretch retirement money
- Low economic growth likely for years
- Recorded Crime - Offenders, 2015-16
- Adequacy of savings still a concern among Australians