The Federal Government’s move to lift the Low-Income Super Tax Offset (LISTO) will deliver a significant superannuation boost to millions of lower-paid workers – many of them women – and make the system fairer, COTA Australia says.
COTA Australia Chief Executive Patricia Sparrow welcomed the decision as “a win for fairness and common sense”.
“If you’re on a low income, every dollar in super counts,” Ms Sparrow said.
“This change will help more Australians retire with dignity and it will particularly benefit women, who are over-represented in lower-paid and part-time roles.”
Ms Sparrow said the reform responds to calls from COTA and others.
“COTA has advocated lifting LISTO so low-paid workers get a fairer super tax cut. It’s good policy that helps the people who need it most,” she said.
“Around 60 per cent of those who benefit are women, and women retire with far less super on average. Today’s announcement is a practical step toward closing that gap.
Ms Sparrow said that in addition to the LISTO changes, the broader suite of super reforms on the table are also welcomed.
“Australia’s superannuation system was aways designed to deliver dignity in retirement. Proposals relating to indexation and realised-gains, are sensible adjustments.
“COTA Australia will engage closely in consultation to help ensure Australians get fair, practical changes that improve retirement outcomes.”
Media contact: Alana Mew, 0419 929 722 or Tamara Kotoyan, 0430 291 890