LISTO Threshold Proposal: Increase From $37,000 to $45,000
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Primary tax-year context: Current Australian tax settings
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General information only. This is not tax or financial advice. Consult a registered tax agent for advice specific to your situation.
In a Treasury media release dated 11 February 2026, the government confirmed it introduced legislation that would expand LISTO (Low Income Super Tax Offset).
Key proposal:
- LISTO income threshold: $37,000 -> $45,000
- Maximum LISTO amount: $500 -> $810
- Proposed start date: 1 July 2027
Why this matters
For many lower-income workers, concessional contributions (including employer SG) are taxed at 15% inside super. LISTO is designed to offset part of that burden and reduce the tax disadvantage for lower-income earners.
If the threshold rises to $45,000, coverage would expand materially.
What you can do now
- Check your current taxable income range and whether you would fall under the proposed threshold.
- If you use salary sacrifice, re-run the trade-off between take-home pay and super accumulation.
- Update long-term super plans only after the bill is passed and final law details are confirmed.
Important caveat
This change is still part of the legislative process. Final start dates and technical rules depend on the enacted law.