On 13 October 2025, Treasury announced a boost to the Low Income Superannuation Tax Offset (LISTO). It also announced amendments to the Better Targeted Superannuation Concessions (BTSC) measure (also referred to as the $3m super tax Bill). The measure was first announced on 28 February 2023.
From 1 July 2027, the LISTO will be boosted to give more support to low-income earners. Key changes include the:
- Income threshold will rise from $37,000 to $45,000.
- Maximum LISTO payment will increase from $500 to $810.
The announced BTSC changes mean that from 1 July 2026:
- The total concessional tax rate applied to earnings on balances between $3 million and $10 million will be 30%.
- The total concessional tax rate applied to earnings on balances over $10 million will be 40%.
- Both the $3 million and $10 million super balance thresholds will be indexed to CPI to maintain relativity with the Transfer Balance Cap.
As part of these changes the Government will also:
- Adjust the earnings calculation so the concessional tax rates on large balances only apply to future realised earnings. Treasury will consult on implementation details including the best approach to the calculation of future realised gains and attribution to individual fund members.
- Apply commensurate treatment to defined benefit interests to ensure equivalent impacts, with Treasury to consult on implementation details.
- Extend the existing exemption for some judges to improve consistency across jurisdictions. This is a small change to respond to the latest legal advice and ensure more neutral treatment.
Next steps
The Government has foreshadowed that it will introduce legislation to implement these changes in 2026 and that it will engage in further consultation with the superannuation industry and other relevant stakeholders to settle implementation.